India’s appetite for coking coal, a critical raw material in steelmaking, is set to witness a significant rise in the coming years. According to industry projections, demand is expected to increase from 87 million tonnes in FY 2024–25 to 135 million tonnes by 2030. The sharp growth outlook is attributed to the expansion of domestic steelmaking capacity under the National Steel Policy and the government’s Viksit Bharat initiative.
Coking coal, also known as metallurgical coal, is indispensable in the production of steel through the blast furnace route. As India accelerates its infrastructure development and industrial growth, the steel sector is positioned to expand its output considerably, thereby increasing the requirement for high-grade coking coal.
Industry experts highlight that while India has made strides in boosting its steel capacity, the country remains heavily dependent on imports to meet its coking coal needs. This reliance on overseas suppliers, primarily Australia and other international markets, exposes the sector to price volatility and supply chain disruptions. Addressing these challenges through diversification of sourcing and long-term supply agreements will be crucial to ensuring energy and raw material security.
The projected surge in demand also underscores the importance of exploring alternative technologies and pathways, such as increased scrap utilisation and green hydrogen-based steelmaking. While these solutions are still evolving, they are expected to play a role in reducing import dependency and aligning with India’s broader decarbonisation goals.
Analysts believe that the growing demand for coking coal reflects the momentum of India’s industrial transformation. However, they caution that sustained efforts will be required to balance the twin objectives of securing critical raw materials and steering the steel industry towards a more sustainable future.
