India became the largest importer of coking coal

India's coking coal imports rose 26% year-on-year in the first half of 2018 to 28 million tonnes, while steel production rose 8.8%. Australia's share of India's coking coal imports fell from 90% in 2017 to 75%. The Indians turned to the US and Canada as alternative suppliers, with imports more than doubling year on year in the first half.

India's coking coal imports are expected to reach nearly 73 million tonnes in 2020, while China's coking coal imports will reach 69 million tonnes.

The spot coking coal price is projected to decline from an average of $ 178 per tonne in 2018 to $ 145 per tonne in 2020. “The impact of improved supply and weakening demand from China is expected to outweigh the impact of rising demand in India, the ministry said in its latest quarterly resource report.

“However, with strong anticipated demand in India, the price is expected to remain well above the 2016 lows,” the ministry adds.

India is expected to overtake Japan as the world's second largest steel producer, with production reaching 108 million tonnes, according to the ministry. In 2020, production will reach 123 million tons, which is 7% of world production.

Steel consumption in India is expected to grow significantly during the forecast period. This will be driven by rapid urban population growth, significant public investment in infrastructure, housing and urban development, and a growing manufacturing sector, the ministry concludes.