India’s dependence on imported coking coal — the backbone of its steelmaking industry — is entering a new phase, with the United States rapidly emerging as a key supplier in a market long dominated by Australia and increasingly contested by Russia and Mozambique.
As New Delhi deepens its energy trade engagement with Washington and commits to large-scale purchases of US commodities, official import data already reflects a steady rise in American metallurgical coal shipments, signalling a strategic recalibration of India’s raw material sourcing.
The shift comes at a critical juncture for India’s industrial expansion. With steel capacity targeted to cross 300 million tonnes by the early 2030s and coking coal recently classified as a critical mineral, securing long-term, high-quality supply has become a central policy and commercial priority.
Moderate coal imports
While India’s total coal imports moderated last year, the coking coal component remains structurally strong.
In 2024–25, India imported 57.6 million tonnes of coking coal, valued at ₹1,032.1 billion. The previous year, 2023–24, saw similar volumes of 58.8 million tonnes, but at a higher value of ₹1,330.0 billion, reflecting softer global prices in the latest fiscal.
Australia still anchors India’s coking coal basket
Australia continues to dominate India’s metallurgical coal supply.
In 2024–25, India sourced 24.6 million tonnes of coking coal from Australia, worth ₹470.5 billion, accounting for over 40% of total coking coal imports. In 2023–24, Australian shipments were even higher at nearly 30 million tonnes, valued at ₹703.1 billion.
The reliance reflects Australia’s consistent quality, high calorific value and compatibility with large blast furnace operations across Indian steel plants.
Russia and Mozambique gain ground
Russia has steadily expanded its presence in India’s coking coal mix.
In 2024–25, Indian buyers imported 8.2 million tonnes of Russian coking coal, valued at ₹108.1 billion. A year earlier, Russian volumes stood at 5.5 million tonnes, worth ₹91.0 billion, indicating growing acceptance of Russian metallurgical grades.
Mozambique has also become a meaningful supplier. In 2024–25, imports of Mozambican coking coal reached 3.5 million tonnes, valued at ₹56.2 billion, compared with 2.2 million tonnes worth ₹45.9 billion in 2023–24.
Together, Russia and Mozambique are gradually chipping away at Australia’s overwhelming share, driven by diversification strategies among Indian steel producers.
The US emerges as a strategic metallurgical supplier
The most notable development is the sharp rise of American coking coal.
In 2024–25, India imported 8.5 million tonnes of coking coal from the US, valued at ₹159.6 billion. In 2023–24, US shipments were marginally lower at around 8.5 million tonnes, but the sustained high volumes underline Washington’s growing role in India’s steel supply chain.
From being a fringe supplier a few years ago, the US has now become one of India’s top four sources of metallurgical coal.
This rise aligns closely with the broader India–US trade push, under which New Delhi has committed to purchasing around $500 billion worth of American goods and energy products over the next five years, explicitly including coking coal.
A senior government official said India is exploring long-term supply contracts with US coal producers to secure premium metallurgical grades required for next-generation steel plants.
Why coking coal is now a strategic asset
India’s decision to classify coking coal as a critical mineral reflects hard realities.
Domestic metallurgical coal reserves are limited and often unsuitable for modern blast furnaces without blending. As steel output rises, import dependence is expected to remain high for decades.
Analysts estimate that every additional 10 million tonnes of steel capacity typically requires 7–8 million tonnes of coking coal, locking in rising import needs even if domestic mining expands.
“With infrastructure spending, auto manufacturing and construction booming, steel demand will remain strong, and that directly translates into sustained coking coal imports,” said a steel sector analyst.
Competitive pressure reshapes supplier dynamics
While Australia remains the anchor supplier, the steady rise of Russia, Mozambique and now the US is reshaping competition.
Australian producers may face pricing pressure as India gains more bargaining power through diversification. Russia’s cost advantage may narrow as India increasingly prefers quality consistency and long-term reliability. The US, despite higher freight costs, is gaining traction due to superior metallurgical properties and stable regulatory frameworks.
A long-term structural shift underway
India’s coking coal imports are no longer just a function of price arbitrage. They are becoming part of a broader strategy around supply security, geopolitics and industrial planning.
The steady climb of US metallurgical coal, alongside growing Russian and African supplies, signals a deliberate effort to rebalance dependence away from any single geography.
As India’s steel ambitions accelerate, coking coal is quietly emerging as one of the most strategic commodities shaping the country’s energy diplomacy and industrial future.