India's SAIL set to expand coking coal procurement from Russia to cut costs

sxcoal.com Company, Import & Export, International 2023-11-07 10:07:43

Steel Authority of India Ltd (SAIL), the country's largest state-owned steel producer, is actively pursuing increased purchases of coking coal from Russia for its comparatively lower prices, local media reported.

SAIL is expecting four shipments, each with a capacity of 75,000 tonnes, in the final quarter ending December, as part of their strategy to optimize costs, said Chairman Amarendu Prakash on November 6.

Coking coal, a crucial raw material for steelmaking, has faced a shortage in supply, leading SAIL to explore alternative sources.

Currently, more than half of India's annual coking coal imports of 70 million tonnes are obtained from Australia. However, the high prices of Australian coking coal have been squeezing profit margins for steel companies, prompting SAIL to explore price-competitive Russian suppliers.

SAIL has received eight shipments from Russia since April, and plans to raise prices of various grades of steel amidst rising import costs.

The company is also considering doubling the capacity of the Benga coal mine in Mozambique through its subsidiary, International Coal Ventures Private Limited (ICVL), to secure a more sustainable supply of coking coal.

ICVL boasts an annual capacity of 2 million tonnes at present.

(Writing by Riley Liang Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article

Connect with us

1 China futures market updates at close (Feb 8) 2024-02-08

Check out latest updates on the Chinese futures market for coking coal, coke, iron ore and others at close.

2 Indonesian low-CV thermal coal prices edge up as Chinese tender prices rise 2024-02-08

Indonesian low-CV thermal coal rose slightly this week despite light demand from Chinese traders who were leaving their desks for the Chinese New Year holiday. The momentum was mainly gained from a ri

3 China's coking coal mines see output, inventory fall as holiday nears 2024-02-08

Coking coal output continued falling in China's major production areas, as more mines suspended extraction for the Chinese New Year holiday break. Inventories at mines also decreased amid output contr

4 Newcastle port Jan coal exports up over 30% on yr 2024-02-08

Newcastle port, the world's largest coal port located in Australia's New South Wales, registered an obvious year-on-year increase of coal exports in January, despite falling from the previous month's

5 Weekly global coal market news summary (Feb 4-8) 2024-02-08

Newcastle coal prices fall after two-day rally as supply outlook weighsNewcastle thermal coal futures slipped on February 6, pulling back from a two-session gain, as higher projected output from major

6 Weekly China coal market news summary (Feb 4-8) 2024-02-08

Summary: coke & steel-related initiatives in major Chinese provinces' 2024 work plansChina's major provinces and regions have recently released their government work reports, reflecting on their achie

7 China's PPI, CPI drops abate in Jan, yet economic concerns persist 2024-02-08

China's producer price index (PPI), gauging the cost of goods at the factory gate, fell 2.5% year on year in January, compared with a 2.7% decrease a month ago, official data showed on February 8.On a

8 Russian coal exports to SE, S Asia surge in 2023, Kpler 2024-02-08

Exports of Russian coal to Southeast and South Asian countries soared in 2023 after supplies to the EU were banned due to the Russia-Ukraine conflict, according to data from the cargo-tracking firm Kp

9 China Coal Daily Track (Feb 8) 2024-02-08

Thermal coalProduction area Most private mines in main producing regions have suspended operations for the Chinese New Year holiday, while those state-owned mines were still dedicated to term contract

10 Australia Jan coal exports down 13.58% on mth, Kpler 2024-02-08

Coal exports from Australia decreased 13.58% month on month to 29.06 million tonnes in January, which was still 5.72% higher than the year-ago level, according to cargo tracking data from Kpler.Japan