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【Ferro-alloys.com】: India's leading steelmakers JSW Steel and SAIL are in talks to import coking coal from Mongolia to diversify their supply.

India's leading steelmakers, JSW Steel and Steel Authority of India (SAIL), are in discussions with Mongolian officials to import coking coal, as they look to diversify their supply sources. The shipments would likely transit through Russia or China, depending on logistical arrangements, the sources added. This move is part of a broader strategy to reduce dependency on traditional markets, especially after disruptions to coking coal shipments from Australia.

India, the world's second-largest producer of crude steel, imports around 85% of its coking coal, much of which traditionally comes from Australia. However, since erratic weather patterns in 2023 hampered Australian coal supplies, lndian steel mills have been looking for alternatives. In particular, there is growing interest in Mongolian coking coal, which is regarded for its higher quality and competitive pricing compared to other international sources.

Mongolia's rich coal reserves and proximity to India present an important alternative for steelmakers. Steel mills in India plan to source coking coal from Mongolia via Russia to reduce dependence on the Chinese market.

The Indian government has been actively involved in supporting efforts by steelmakers to reduce over-reliance on any single nation for raw materials, underscoring the importance of diversifying import routes. In the first half of the current fiscal year, India imported 29.4 million metric tons of coking coal, a 2% increase from the same period last year, highlighting the ongoing demand for the material as the country's steel industry continues to grow.

• [Editor:Alakay]