India to remain top importer of coking coal: ISA President Oommen

India will continue to remain the top importing nation for coking coal in the near future, industry body ISA said noting that the rising prices are affecting the domestic steel industry the most.

Coking coal is a key raw material that is used to manufacture steel through the blast furnace route.

The Indian steel industry is finding ways and means to explore sustainable pathways for coking coal usage by way of using various technologies. However, it is a long journey, Indian Steel Association (ISA) President Dilip Oommen said on Monday.

"India in the near future will remain the largest coking coal export destination, one due to a significant increase in domestic steel demand and the other as China will depend more on its own resources," he said, addressing the ISA Coking Coal Summit in the national capital.

India will continue to remain the top importer of coking coal as most of the Indian steel players have already planned new capacities in the BF-BOF route, Oommen said, adding that in India, BF-BoF (blast furnace) accounts for 46 per cent of the production route, while EAF (Electric Arc Furnace) is 22 per cent and IF (Induction Furnace) using thermal coal is 32 per cent.

He added that India is the largest importer of met coal, which includes PCI (pulverised coal injection). The annual import ranges between 70-75 million tonnes.

The imports are mainly from countries like Australia, the US, Canada, and Mozambique, among others, he added.

According to SteelMint India, coking coal prices have moved up by around USD 100 per tonne in the last six months to trade at USD 350 per tonne at present.

ISA Secretary General Alok Sahay said "partnership between coking coal miners and its user industry steel is most important. Price discovery needs to be rationalized and transparent."

SAIL Chairman Amarendu Prakash said India's coking coal imports are expected to go up to about 120 MT in the next seven years in sync with the rise in steel production.

Naveen Jindal, Chairman of Jindal Steel and Power, said "though blast furnaces are very efficient machines, there is scope for further enhancing the efficiency. The industry must invest in research and development to blend different types of coal for usage in the blast furnace."

Additional Coal Secretary A Nagaraju said the Coal Ministry was working vigorously on the Jharia Master Plan, which requires the rehabilitation of 15,000 families.

"When done, we will get a huge reserve of coking coal," Nagaraju said.