India’s JSW Steel and state-run Steel Authority of India (SAIL) are in talks with Mongolian authorities to import two shipments of coking coal, Reuters reported.
JSW Steel, plans to buy 2,500 metric tons, while SAIL aims to import 75,000 metric tons of the steelmaking raw material from Mongolia. Mongolia is offering higher-grade coking coal at prices about $50 per metric ton lower than Australian coal.
JSW Steel and SAIL are to import Mongolian Coking coal through Russia or China keeping logistics planning in focus.
When asked if the company was looking to receive a shipment from Mongolia, “We are just trying to understand how the logistics work,” SAIL Chairman Amarendu Prakash told Reuters.
India meets 85% of its coking coal requirements through imports. During the first half of the financial year, India’s coking coal imports rose nearly 2 per cent to 29.4 million metric tons, says reports. Due to erratic weather conditions, last year, coking coal supplies of Australia, accounting for over half of India’s coking coal imports of around 70 Million metric tons a year. Since then, India has been seeking to source coal from other regions.
India’s Jindal Steel and Power is also keen on sourcing coking coal from Mongolia, as per Reuters report.
The Government is working towards helping Steel companies diversify the imports to avoid over reliance on a single or specific source, as oer the comments of BigMint, commodities consultancy.