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Imports of metallurgical coal from Russia have grown three-fold in the last three years to around 15.1 million tonnes in 2023-24 mainly due to lower prices – while the same imports from Australia have declined, according to Indian research firm Big Mint.
Russia’s share in India’s metallurgical coal imports of 73.2 million tonnes has risen to around 21%, up from 8% in 2021-22, Big Mint said in a report.
The import of metallurgical coal, which includes coking coal and pulverised coal injection (PCI), from Russia, stood at 5.1 MT, accounting for 8% of India’s total imports of 65.6 MT of the commodity in 2021-22. Metallurgical coal imports from Russia rose to 11.3 MT in 2022-23, accounting for 16% of 69.9 MT met coal imports in that year. In 2023-24, met coal imports from Russia were 15.1 MT or 21% of total met coal imports of 73.2 MT.
Australia, a major supplier of met coal to India, saw a decline in the commodity’s exports to India. Australia supplied 50.7 MT of met coal in FY22, or 77% of the total imports of India. Met coal shipments dropped to 42.2 MT in FY22, while market share also declined to 60%. In the last fiscal, met coal imports from Australia dropped further to 40.4 MT, resulting in a market share of 55%.
Iron ore and metallurgical coal or met coal are essential ingredients in steel production. India is dependent on imports to meet its domestic demand for met coal.
According to Big Mint analysts, “cost-benefit” is the main reason for the rise in imports of metallurgical coal from Russia. Imports from Russia are costing less to domestic steel players because of lower prices.
However, in the long run, imports from Russia are projected to whittle down as the country is expected to impose an export tax on met coal and an increase in logistics costs.
SAIL Chairman Amarendu Prakash had said the company sourced around 8 coking coal shipments of 75,000 tonnes each (totalling 600,000 tonnes) from Russia in the first two-quarters of FY24.
Further Reading
Russia-India 2024 Trade & Development
The Russia-India trade and development dynamics are comprehensively featured in our 2024 Russia’s Pivot to Asia guide, which is a complimentary download and can be accessed in English here and in Russian here.
