Amid unprecedented rise in the prices of coking coal in the global market, the Indian Metallurgical Coke Manufacturers’ Association (IMCOM) has urged the steel industry in the country to get united to resist the trend.

Coking coal prices have increased three-fold from $95 to $310 in the past one year, hurting the viability of the steel industry, which includes metallurgical coke to the steel plants in India, the IMCOM stated in a statement here.

Chinese control Currently, China with imports of around 35 million tonnes of coking coal from Australia controls the global coking coal prices, hence a higher price by 5 per cent would not harm the industry in China. But such a move can kill the steel industries in countries such as India, it said.

The steel industry is unable to pass on entirely the increased price of coking coal to the user industry as this would result in inflation and a spiralling effect in the user industries in the country.

IMCOM has urged the steel industry to realise the Chinese ploy and come together to stop this menace as India imports more coking coal – about 45 million tonnes – than China.

Indian steel industry is in a position to dictate and regulate the price of coking coal from Australia by insisting on contractual rate as was done by Japanese steel mills and refuse buying at index-based pricing.

“Being one of the largest buyers of Australian coking coal, India should exert its might and foil the Chinese ploy. IMCOM has urged the Union Ministry of Steel take the lead in the matter and to bring the Indian steel industry together since it is a matter concerning survival of all,” it said.

IMCOM has also urged the Union Ministry of Finance to abolish the 2.5 per cent import duty on coking coal in the interest of the merchant metallurgical coke producers as well as the steel industry which is today confronted with soaring coking coal prices.

Related Topics