New Delhi: India will continue to remain the largest coking coal export destination in the near future, industry body Indian Steel Association (ISA) said on Monday, noting that the rise in prices is affecting the domestic steel industry the most. Coking coal is a key raw material that is used to manufacture steel through the blast furnace route.
The Indian steel industry is finding ways and means to explore sustainable pathways for coking coal usage by way of using various technologies. However, it is a long journey, Indian Steel Association (ISA) President Dilip Oommen said.
"India in the near future will remain the largest coking coal export destination, one due to a significant increase in domestic steel demand and the other as China will depend more on its own resources," he said, addressing the ISA Coking Coal Summit in the national capital.
Indian steel players have already planned new capacities in the BF-BOF route, Oommen said, adding that in India, BF-BoF (blast furnace) accounts for 46 percent of the production route, while EAF (Electric Arc Furnace) is 22 percent and IF (Induction Furnace) using thermal coal is 32 per cent. He added that India is the largest importer of met coal, which includes PCI (pulverised coal injection). The annual import ranges between 70-75 million tonnes.
The imports are mainly from countries like Australia, the US, Canada, and Mozambique, among others, he added. According to SteelMint India, coking coal prices have moved up by around USD 100 per tonne in the last six months to trade at USD 350 per tonne at present.
ISA Secretary General Alok Sahay said, "Partnership between coking coal miners and its user industry steel is most important. Price discovery needs to be rationalised and transparent."