India is looking into alternative options for importing coking coal from Mongolia, bypassing China, in order to avoid dependence on the Chinese transit route. Last year, Indian steel mills faced difficulties due to the unreliable supply of coking coal from Australia, prompting the government to explore diversifying its sources.
Despite the longer route, Indian steel companies are considering importing Mongolian coking coal through Russia. According to an anonymous government official, there are concerns about strategic issues associated with sourcing through China, and the route through Russia is longer.
Following disruptions in the supply of Australian coking coal, Indian mills urged the government to help establish reliable supply routes from Mongolia. Mongolia, known for its high-quality coking coal, offers a more cost-effective option compared to Australian coal.
Although some Mongolian coking coal has been imported through China, Indian authorities are wary of relying solely on Beijing for supply, especially given the strained relations between the two countries following border clashes.
Indian steel companies import approximately 70 million metric tons of coking coal annually, with the majority coming from overseas. Australia usually dominates India’s coking coal imports, but the country also sources coal from Russia, the United States, and other nations.
During the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, a slight increase from the previous year. This move to diversify coking coal sources is aimed at ensuring stable and uninterrupted supply for the Indian steel industry.
