During the first half of this fiscal year (April–Sept), Indian steel mills have significantly increased their coking coal imports from Russia, amounting to 2.97 million tonnes (mt), almost three times the 0.87 mt imported during H1 FY23. The majority of the Russian coal was acquired at favorable prices, according to trade sources.

In contrast, coking coal imports from Australia, the largest global supplier, have declined to one of the lowest levels in five years, except for H1 FY22, totaling 17.74 mt during the April–Sept period of this fiscal, an 8 percent year-on-year decrease.

Steel Ministry officials have reported that Russia has now become India's third-largest supplier of coking coal. Shipments during the first half of this year are among the highest in the last five years. Russia has surpassed other key supplier nations, displacing Canada and Mozambique.

One of the significant buyers of Russian coking coal has been the Indian PSU major, SAIL. In Q1 FY24, SAIL received four shipments of coking coal, each totaling 75,000 mt, and four additional shipments totaling 300,000 mt were expected in Q2 FY24.

Coking coal is a vital raw material for steel production, and India, as the world's second-largest crude steel producer, is also among the largest importers of this raw material.

Data from research firm SteelMint and other trade sources indicate that Russian coking coal shipments during April to September in previous years were 1.30 mt in FY20, 1.55 mt in FY21, and 0.70 mt in FY22.

Conversely, Australia, which was once the key supplier nation responsible for over 70 percent of coking coal supplies to Indian steel mills, has seen a decline in shipments due to volatile prices, primarily on the higher side. Australian coking coal accounted for 74 percent of imports in H1 FY20 but has steadily decreased to 61 percent in H1 FY24. Supplies have also decreased from 21.69 mt in H1 FY20 to 15.39 mt in H1 FY21. They then surged to 21.60 mt in H1 FY22 due to high demand from Indian mills, before declining to 19.18 mt and 17.74 mt in H1 FY23 and H1 FY24, respectively, according to SteelMint data.

Furthermore, Indian coking coal imports during H1 FY24 have remained at similar levels, hovering around 29 mt. In absolute terms, there was a slight YoY decline of 0.7 percent, with 28.99 mt in H1 FY24 compared to 29.19 mt in H1 FY23. An official from the ministry mentioned that increased availability from domestic sources has slightly reduced imports.

Indian mills have also been exploring new markets, importing coking coal from Poland (0.05 mt) for the first time in five years. They have also revisited offers from New Zealand (0.06 mt) and Colombia (0.01 mt), according to SteelMint data.