← External Forces: Trade, Geopolitics & Market Access (all topics)
Coking coal import dependence
What it is
Metallurgical coal is the reductant in blast furnace steelmaking and has no substitute in that route. India imports roughly 85% of its coking coal requirement, around 58-70 MT a year, mainly from Australia, because domestic reserves are high-ash and unsuitable for direct use
It is typically the largest single input cost in BF-BOF steelmaking after iron ore
Impact on industries
- The dominant margin variable and entirely outside domestic control - price is set by seaborne supply, and Australian weather events alone can move it sharply
- Compounds the CBAM problem, since the same coal that creates the cost exposure creates the emissions intensity now being taxed at the EU border
- Washery investment, blending and higher pellet and scrap use cut consumption per tonne, though none removes the dependence
- Iron ore is the offsetting strength - domestic ore availability is good, so India is exposed on one input rather than both