Coking Coal's 25 Percent Surge Squeezes India's Steelmakers

The price of coking coal, or metallurgical coal, one of the essential raw materials in steelmaking, rose 25 percent in the first seven months of this year compared with last year, squeezing the margins of India's steelmakers. According to Oilprice, citing Reuters, India imports as much as 95 percent of its coking coal demand, a dependence that has left its steel industry exposed to supply disruptions.

Analysts at consultancy CRU said the price rise stemmed from a slower ramp up of new mines, higher prices due to the Iran war, supply disruptions in Australia, and a deadly coal mine explosion in China's Shanxi province that killed more than 80 people. India expanded its steelmaking capacity 10 percent in fiscal 2026 to about 220 million tons a year, but executives said competition from Chinese steel prevents Indian producers from raising their selling prices.