India’s steel industry is preparing for a notable increase in coking coal imports, a move that underscores the sector’s growing dependence on this critical raw material for blast furnace operations. According to senior officials at the Ministry of Steel, domestic steel producers are ramping up import volumes to secure consistent supply amid tightening global availability and fluctuating prices.
Coking coal, primarily used in the production of steel through the blast furnace route, remains one of the most cost-sensitive inputs in the manufacturing process. India imports a major portion of its coking coal requirements, largely from Australia, the United States and Russia. The anticipated surge in imports reflects both rising domestic steel output and the limited availability of high-quality coal from local sources.
Industry experts note that while this import-led strategy ensures supply security, it also exposes steelmakers to global price volatility and logistical challenges. Any increase in international coal prices or disruptions in shipping routes could place additional pressure on production costs and profit margins. Smaller and mid-sized producers, which are more reliant on imported coal, are likely to face higher operational expenses, potentially affecting competitiveness.
The development comes at a time when India is pushing ahead with its target to expand annual crude steel capacity to 300 million tonnes by 2030. With infrastructure and construction driving domestic demand, the need for raw material stability has become even more critical. At the same time, the government’s push for decarbonisation and adoption of low-carbon steelmaking technologies highlights a growing tension between traditional blast furnace operations and future sustainability goals.
As India continues to balance growth ambitions with resource constraints, the rising dependence on imported coking coal may serve as both a short-term necessity and a long-term challenge for the country’s steel ecosystem.
