India's metallurgical coal imports from Russia surge nearly threefold
What's the story
India has seen a significant rise in its metallurgical coal imports from Russia over the past three fiscal years (FY), reaching approximately 15.1 million tons in 2023-24.
This increase is largely due to the competitive pricing offered by Russia.
Russia's share in India's metallurgical coal imports of 73.2 million tons, has increased from approximately 8% in 2021-22 to about 21%.
Meanwhile, Australia, earlier a major supplier of met coal to India, has experienced a decline in its exports.
Import data
Detailed analysis of India's met coal import trends
In FY 2021-22, Russia supplied about 8% of India's total metallurgical coal imports, amounting to 5.1 million tons.
The following year, Russian imports increased to 11.3 million tons, making up 16% of India's total met coal imports.
By the fiscal year of 2023-24, Russia's contribution had grown to approximately 21% with import volumes hitting the mark of 15.1 million tons.
Export dip
Decline in Australia's exports to India
Australia, once a key supplier of met coal to India, has seen a decrease in its exports over the same period.
In FY22, Australia provided India with 50.7 million tons of met coal, accounting for 77% of total imports.
However, this figure fell to 42.2 million tons in FY22 and further dropped to 40.4 million tons in the last fiscal year.
Cost factor
Cost benefit led to import decisions
Metallurgical coal is crucial for steel production and India relies heavily on foreign imports to meet its domestic demand.
According to BigMint analysts, the primary driver behind the increased Russian imports is the cost-benefit factor.
They explained that Russian imports are costing less to domestic steel players because of low prices.
However, they also predicted a potential decrease in Russian imports due to the anticipated export tax on met coal and rising logistics costs.