Indian steel mills are actively exploring alternative sources for coking coal as they diversify their supply chain. The proportion of coking coal sourced from Australia has dropped from 70% to 50% in the early months of the fiscal year. India is also looking into the possibility of securing supplies from Mongolia. Australia has traditionally been the largest supplier of coking coal to Indian steel mills. As of the latest data, the metallurgical coke price (FOB-Australia) stands at $314 per tonne. According to Nagendra Nath Sinha, Union Steel Secretary, Indian mills are increasingly turning to other countries like the USA, Russia, Canada, Indonesia, New Zealand, and Singapore for coking coal supplies. This diversification has created multiple options for Indian mills. India is actively engaging with Mongolia for coking coal supplies. Additionally, Indian mills are showing interest in new supplier countries like Russia. They are also experimenting with different coal grades for blending, which is seen as a positive development. In FY23, India imported over 56 million tonnes of coking coal, with approximately 52% of this (around 35 million tonnes) coming from Australia. This is a decline from FY22 when Australia accounted for 70% of India's coking coal imports. According to data from the Directorate General of Foreign Trade (DGFT), Russia is the third-largest supplier of coking coal to India, providing 1.65 million tonnes in April-June 2023. The USA is the second-largest supplier with 1.96 million tonnes. While Mozambique is also a key supplier, its coal has limited demand due to its high ash content. Despite being the world's second-largest producer of crude steel, India remains dependent on imported coking coal, a crucial raw material. Discussions have been ongoing with Mongolia regarding coking coal supplies. However, challenges include the ash content of Mongolian coal and logistical issues related to transporting it from a landlocked country with China and Russia as its primary neighbors. Mongolia is reportedly working on building evacuation facilities on the Russian port side, which India is monitoring. Mongolia is also establishing processing and washing facilities at its mines, which could make it a potential source of coking coal for India once these facilities become operational.