India, the world's second-largest producer of crude steel, currently imports 85% of its coking coal needs, with Australia being the dominant supplier. However, disruptions caused by erratic weather in Australia last year, which significantly impacted supply chains, have prompted Indian steelmakers to explore alternative sources.
India's steel giants, JSW Steel and the state-run Steel Authority of India (SAIL), are in discussions with Mongolian authorities about importing coking coal, a critical raw material for steel production. According to sources familiar with the matter, JSW Steel plans to purchase 2,500 metric tons, while SAIL is considering importing 75,000 metric tons from Mongolia. These shipments are expected to be routed through either Russia or China, reflecting logistical considerations.
SAIL Chairman Amarendu Prakash confirmed that the company is evaluating the feasibility of receiving coking coal from Mongolia. In an official statement, SAIL emphasized its intention to diversify suppliers, a strategy that underscores India's broader efforts to secure stable and cost-effective raw material supplies.
Mongolia, though landlocked, offers high-grade coking coal at competitive prices. Its strategic potential has drawn interest from Indian industry leaders as they seek to meet increasing domestic steel demand fueled by rapid economic growth and infrastructure investments.
Efforts are also underway to establish regular Mongolian coal imports via Russia, which could provide an alternative to routes through China. These developments could help reduce India's reliance on traditional suppliers and enhance supply chain resilience, addressing the rising demand for coking coal in the country's burgeoning steel industry.
