September 10, 2025 - India's vision toward diversifying met coal origination, and aatmanirbharta, or self-reliance, were reemphasized as key focuses during the country's third edition of the India Steel Association's Coking Coal Summit in Delhi Sept. 8-9.

Amid unpredictable geopolitical landscapes, shifting trade flows, and with Indian steel margins coming under greater pressures, integrated steelmakers in the country are reemphasizing their aims to diversify met coal sourcing options to tide volatility on over relying on any single origin.

"We're working to enhance our [sourcing] geography base, and within existing geographies, to also have more suppliers, so our overall supply basket increases," Sanjay Agarwal, executive director of the Coal Import Group at Steel Authority of India, said during a panel discussion Sept. 8.

Steelmaking participants at the conference pointed toward price volatility during weather-related events, port congestion and mining down times, which increase their price risk if they rely on a single origin for supply.

"We've developed six sites within India for coal testing and hence are able to bring in new grades of coals, try it out at a few of these places, and see if it works out technically or commercially," Amita Khurana, group chief for raw material procurement at Tata Steel, said during a panel discussion.

India has received 54.5 million mt of coking coal imports in the first eight months of 2025, according to S&P Global Commodities at Sea data Sept. 9. Australia accounted for 26.4 million mt, or 48% of total imports. Russia, the US and Mozambique totals totaled 13.3 million mt, 6.7 million mt and 4.2 million mt, respectively.

In contrast, in 2021, in part due to shifted trade flows after China's unofficial import ban of Australian coals from October 2020 to January 2023, India's reliance on Australian coal then accounted for 78% of its total 2021 imports, or 58.2 million mt.

"We have learned ... how to reduce the consumption of prime hard coking coal, with stamp charge [coke ovens] as an advantage ... because [for] Australia, every now and then you will hear that there is a weather problem, there is a railway problem, there is a long queue at the port, you don't know what next surprise is going to hit you," said Puneet Jagatramka, an executive vice president at JSW Steel.

Limited opportunities to diversify 

Before Russia's invasion of Ukraine in February 2022, volumes from Russia reached 5.5 million mt in 2020. Most Russian grades of coal to India fall within the mid-vol PCI category, which displaced previous reliance on Australian ones, according to Platts.

"At the end of the day, there are only five-six origins that are blessed with these resources, and there's only that much one can do to diversify beyond these countries," Khurana added.

Apart from imports, the panels discussed about the need for India to increase availability of domestic supplies, and to adopt better technology in coke making, to aid in its push for self-reliance.

"The fundamental problem that we're facing is that steel in India is going to grow at a certain pace, while visibly there's just not enough additional coking coal that is developing at this stage to meet that demand," Khurana said. "India has to continue to produce and wash more [domestic] coal, and that also helps to reduce import reliance."

She added that some wash plants in India were only operating at about 40% utilization due to insufficient raw coal feed. And issues such as poor connectivity of local logistics, low domestic coal quality, and the challenge for steelmakers to dispose of mining byproducts from auctioned lots hindered greater adoption of domestic supplies.

Market sources on the sidelines of the conference said ash levels in India's domestic coal supplies can range from 18% to 24%, limiting the percentage a steelmaker can use in its blends and hence the need for the industry to improve coal beneficiation processes.

Role of technology 

Technology was also discussed in regard to India's path to self-reliance, as improved coking ovens can aid to a wider acceptance of coal grades.

"The industry is also switching to stamp charging coke ovens, and that would help increase the use of lower grade coals in blends, thus effectively reducing overall cost," Agarwal added.

Jagatramka said, "We did a technical evaluation and we are convinced 25%-30% of our feed can be managed with the domestic coking coal, because all of our [coke oven] batteries are stamp charged."

Unlike Tata Steel and SAIL, JSW has not consumed domestic coking coal so far, Jagatramka said.

A market participant on the conference's sidelines added that such a physical asset change would require large capital investments, which would be a challenge for some non-integrated Indian mills or smaller merchant cokeries.

"Perhaps the government might one day look into modernizing India's coking industry like what China did, and provide support with policies, or even financially," the trader said. "But yes, doing so will give more ability for them to accept a wider range of coal eventually."

Meanwhile, separate from the conference, an international trader said that instead of looking for new seaborne supply lines, buyers should instead look to coal resources already available in the market.

"That is the only practical manner that India can further leverage on their strength and increase their ability to project their pricing power, having blend flexibility, which the Chinese have demonstrated is key," the international trader said.