Coking coal import through Paradip falls by 24%

Mumbai : Coking coal imports through Paradip port declined for the third consecutive month in June as higher prices squeezed demand. In June, coking coal imports through Paradip port stood at 482,593 tonne, much lower than 632,795 tonne in May. It was 656,295 tonne in April. This marks 24 percent fall in coking coal import between May and June, this year.

Declining coking coal imports may stymie nearly nine million tonne steel production and one million tonne pig iron output in the state and as most steel makers depend on imported coking coal from Australia for fuel, which has lower ash content than locally available coal. “As many as four pig iron units and a few steel units in the state have stopped production in past couple of months as the higher coking coal prices put pressure on profit margins. Besides, supply crunch from exporting nations also resulted in slower imports," said an official of a state-based large pig iron maker and coking coal importer. According to government statistics, steel production growth in the country slowed down to 6.1 per cent in May compared to 9 per cent a year ago. Meanwhile, coking coal prices jumped over 20 percent to $230-250 per tonne in global markets in past five months after a devastating Australian flood cut supplies.