According to the industry body ISA, India is expected to maintain its position as the leading coking coal export destination in the foreseeable future. The body also observed that the surge in prices significantly impacts the domestic steel industry. The blast furnace route relies on coking coal as a crucial raw material to produce steel.
The Indian steel industry is employing various technologies to discover sustainable approaches for utilizing coking coal. Monday, Dilip Oommen, President of the Indian Steel Association (ISA), stated that despite being a lengthy undertaking, it is worthwhile.
Addressing the ISA Coking Coal Summit in the national capital, he stated that in the near future, India will continue to be the primary recipient of coking coal exports. The first reason for this is the substantial growth in domestic steel demand, and secondly, China will rely more on its own resources.
Indian steel players have already planned new capacities in the BF-BOF route, Oommen said, adding that in India, BF-BoF (blast furnace) accounts for 46 percent of the production route, while EAF (Electric Arc Furnace) is 22 percent and IF (Induction Furnace) using thermal coal is 32 percent.
He added that India is the largest importer of met coal, which includes PCI (pulverized coal injection). The annual import ranges between 70-75 million tonnes. The imports are mainly from countries like Australia, the US, Canada, and Mozambique, among others, he added.
According to SteelMint India, coking coal prices have moved up by around USD 100 per tonne in the last six months to trade at USD 350 per tonne at present.