India Now Largest Buyer of Seaborne Coking Coal, Aims for 300M MT Steel Capacity by 2030
India has become the largest global buyer of seaborne coking coal, surpassing China and Japan, as its imports are set to reach 100 million metric tons by 2030, according to S&P Global Commodity Insights. This surge aligns with India's robust plans to expand steel production capacity to meet its growing infrastructure demands.
The Indian government is focusing on increasing its steel production capacity by 71%, aiming to reach 300 million metric tons annually by 2030. This ambitious expansion is being driven by infrastructure spending, projected to rise by 11% from 2024-25. The construction and building sectors are expected to account for 35-40% of the steel demand.
Despite the country's efforts to boost domestic production of coking coal and reduce reliance on imports, India's need for seaborne coking coal continues to grow due to the expanding steel production capacities. This has positioned India at the forefront of global coking coal markets, significantly influencing market dynamics, trade flows, and pricing in the coming decade.
"As we progress towards our 2030 steel production targets, the integration of enhanced coking coal supply strategies remains critical", commented an official from the Ministry of Steel. "While we are working to ramp up domestic production, the global coking coal market remains essential to our industrial strategy".
India's strategic push places the country in a pivotal position within the global coking coal market, impacting trade flows and pricing structures in the sector. As India's demand for seaborne coking coal grows, it will play a significant role in shaping the global market landscape.
