Metal coal shipments fell to 42.2 tonnes in FY22. (Representative)
New Delhi:
Russia’s metallurgical coal imports have tripled over the past three years to about 15.1 million tonnes in 2023-24, mainly due to lower prices, while those from Australia have declined, according to a research firm.
Russia’s share in India’s coking coal imports of 73.2 million tonnes (MT) has increased to around 21 percent from around 8 percent in 2021-22, research firm Big Mint said in an announcement.
Import of metallurgical coal, which includes coking coal and pulverized coal injection (PCI), from Russia was 5.1 MT, accounting for 8 percent of India’s total imports of 65.6 MT of the commodity in 2021-22 .
Russia’s metallurgical coal imports increased to 11.3 MT in 2022-23, representing 16 percent of the 69.9 MT met in coal imports that year. In 2023-24, Russia’s coking coal imports were 15.1 MT or 21 percent of total coking coal imports of 73.2 MT.
Australia, a major supplier of coking coal to India, has seen a decline in exports of the commodity to India. Australia supplied 50.7 tonnes of coking coal in FY22, or 77 percent of India’s total imports.
Metal coal shipments fell to 42.2 tonnes in FY22, while market share also fell to 60 percent.
In the last fiscal year, Australia’s coal imports fell further to 40.4 tonnes, resulting in a market share of 55 percent. Iron ore and metallurgical coal or metallurgical coal are essential ingredients in steel production. India depends on imports to meet its domestic demand for metallurgical coal.
According to BigMint analysts, “cost-benefit” is the main reason for the increase in imports of metallurgical coal from Russia. Imports from Russia are costing domestic steelmakers less due to low prices, a BigMint analyst said.
However, in the long term, imports from Russia are expected to decline as the country is expected to impose an export tax on coking coal and an increase in logistics costs, another analyst said.
Earlier speaking to PTI, SAIL Chairman Amarendu Prakash said the company has procured around 8 consignments of coking coal of 75,000 tonnes each (totaling 600,000 tonnes) from Russia in the first two quarters of FY24.
Tata Steel has also tested Russian metallurgical coal in steel production.
VR Sharma of Jindal Steel and Power (JSP) said India can meet 50% of its metallurgical coal requirement from Russia.
(Except the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
This story originally appeared on Ndtv.com read the full story
