https://sputniknews.in/20240927/indian-importers-turn-to-russian-coal-for-superior-quality-8211359.html
Indian Importers Turn to Russian Coal for Superior Quality
Indian Importers Turn to Russian Coal for Superior Quality
Sputnik India
Importing Russian metallurgical coal is crucial for India's economic growth, as the country aims to boost steel production from 150-160 million to 300 million... 27.09.2024, Sputnik India
2024-09-27T20:32+0530
2024-09-27T20:32+0530
2024-09-27T20:45+0530
india
russia
australia
us
collective west
government of india
ministry of external affairs (mea)
coal production
indo-pacific
russian economy
https://cdn1.img.sputniknews.in/img/07e7/01/03/367282_0:160:3073:1888_1920x0_80_0_0_74308a95324e8543945b2009e26a1257.jpg
India’s coal imports from Russia hit a yearly peak of $343 million in July, Sputnik analysis showed, based on data from India’s trade and industry ministry.This surge in imports has enabled Russia to reclaim its position as the third-largest coal exporter to India, surpassing the US for the first time in a year.Similarly, Bhattacharyya highlighted that Russia is an attractive option for energy products such as coal, oil, and gas due to its competitive pricing, and the ability to conduct transactions in Indian rupees.This shift is notable as India previously sourced metallurgical coal mainly from Australia and thermal coal from South Africa and Indonesia, over time, imports expanded to include the U.S. and Canada, he argued.The former manging director highlighted that the another factor contributing to the increase in Russian imports is its ability to supply metallurgical coal, which is in short supply in India, whereas Indonesia, despite its high coal imports, it lacks metallurgical coal.“Russian coal is preferred by some of the major import-based private power plants in India due to its quality and is mainly used for blending purposes as the end product becomes easy to use in their boilers,” Pritish Raj, Managing Editor, Asia & EMEA Thermal Coal at S&P Global Platts told Sputnik India.Russian Coal Imports Fuel India’s Steel Sector GrowthAs India aims to double its steel production from 150-160 million tonnes to 300 million tonnes by 2030, the need for metallurgical coal becomes even more pressing, he added noting “this import is essential for supporting the ambitious steel production targets, thereby contributing to the country’s self-reliance in the steel sector.”Meanwhile, Bhattacharyya predicted that India's imports of metallurgical coal from Russia are expected to rise, particularly if Russian coal continues to be competitive in both quality and price, aided by government negotiations.At the same time, Russian Energy Ministry anticipates that Russia's annual coal production will increase to 600 million tonnes by 2050, up from 438 million tonnes last year, marking a roughly 37% rise.By that time, Russia is expected to rank as the third or fourth largest coal mining country globally, reducing production costs by expanding open-pit mining operations.
https://sputniknews.in/20240521/tougher-us-sanctions-cant-dampen-indias-appetite-for-russian-coal-7421588.html
india
russia
australia
us
indo-pacific
indonesia
south africa
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2024
Swapna Nair
https://cdn1.img.sputniknews.in/img/07e7/09/12/4320104_0:0:681:681_100x100_80_0_0_ca8a7d4d582609272840ffdd1cde7278.jpg
Swapna Nair
https://cdn1.img.sputniknews.in/img/07e7/09/12/4320104_0:0:681:681_100x100_80_0_0_ca8a7d4d582609272840ffdd1cde7278.jpg
News
en_IN
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Swapna Nair
https://cdn1.img.sputniknews.in/img/07e7/09/12/4320104_0:0:681:681_100x100_80_0_0_ca8a7d4d582609272840ffdd1cde7278.jpg
india, russia, australia, us, collective west, government of india, ministry of external affairs (mea), coal production, indo-pacific, russian economy, joint indo-russian venture, indonesia, south africa, indian economy, economics, trade corridor, free trade agreement (fta), world trade organization (wto), rupee-rouble trade, trade in national currencies
india, russia, australia, us, collective west, government of india, ministry of external affairs (mea), coal production, indo-pacific, russian economy, joint indo-russian venture, indonesia, south africa, indian economy, economics, trade corridor, free trade agreement (fta), world trade organization (wto), rupee-rouble trade, trade in national currencies
Indian Importers Turn to Russian Coal for Superior Quality
20:32 27.09.2024 (Updated: 20:45 27.09.2024) Importing Russian metallurgical coal is crucial for India's economic growth, as the country aims to boost steel production from 150-160 million to 300 million tonnes by 2030, making these imports vital for self-reliance in the steel sector, according to experts.
India’s coal imports from Russia hit a yearly peak of $343 million in July, Sputnik analysis showed, based on data from India’s trade and industry ministry.
This surge in imports has enabled Russia to reclaim its position as the third-largest coal exporter to India, surpassing the US for the first time in a year.
The geological compatibility of Russian coal with Indian coal, combined with its lower ash and sulphur content, makes it an attractive option, contributing to the rise in imports, Partha Sarathi Bhattacharyya, Former Executive Chairman & Managing Director at Coal India Limited told Sputnik India.
Similarly, Bhattacharyya highlighted that Russia is an attractive option for energy products such as coal, oil, and gas due to its competitive pricing, and the ability to conduct transactions in Indian rupees.
This shift is notable as India previously sourced metallurgical coal mainly from Australia and thermal coal from South Africa and Indonesia, over time, imports expanded to include the U.S. and Canada, he argued.
The recent rise in Russian imports, according to Bhattacharyya, is driven by favourable trade terms and lower prices compared to countries like the U.S., and even with dollar transactions, Russian coal is expected to remain more affordable than imports from countries like Australia and the U.S., where high freight costs present challenges.
The former manging director highlighted that the another factor contributing to the increase in Russian imports is its ability to supply metallurgical coal, which is in short supply in India, whereas Indonesia, despite its high coal imports, it lacks metallurgical coal.
“Russian coal is preferred by some of the major import-based private power plants in India
due to its quality and is mainly used for blending purposes as the end product becomes easy to use in their boilers,”
Pritish Raj, Managing Editor, Asia & EMEA Thermal Coal at S&P Global Platts told Sputnik India.
Bhattacharyya emphasised that factors like the availability of metallurgical coal, high-quality thermal coal with lower ash, and closer proximity all contribute to the increase in imports from Russia, alongside favourable trade terms and pricing discounts.
Russian Coal Imports Fuel India’s Steel Sector Growth
In the same vein, the import of Russian metallurgical coal is crucial for India’s economic growth, particularly because the country lacks sufficient domestic supply, Bhattacharyya reckoned.
As India aims to double its steel production from 150-160 million tonnes to 300 million tonnes by 2030, the need for metallurgical coal becomes even more pressing, he added noting “this import is essential for supporting the
ambitious steel production targets, thereby contributing to the country’s self-reliance in the steel sector.”
Meanwhile, Bhattacharyya predicted that India's imports of metallurgical coal from Russia are expected to rise, particularly if Russian coal continues to be competitive in both quality and price, aided by government negotiations.
While India’s thermal coal imports are expected to gradually decrease with the entry of new companies, the ongoing domestic shortage of metallurgical coal makes Russian imports crucial, he concluded.
At the same time, Russian Energy Ministry anticipates that Russia's annual coal production will increase to 600 million tonnes by 2050, up from 438 million tonnes last year, marking a roughly 37% rise.
By that time, Russia is expected to rank as the third or fourth largest coal mining country globally, reducing production costs by expanding open-pit mining operations.
