{
  "id": 1909196,
  "title": "Indian steel mills face margin squeeze as global coking coal prices rise",
  "url": "https://urgent.news/2026/08/19/indian-steel-mills-face-margin-squeeze-as-global-coking-coal-prices-1909196",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T09:37:29.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/commodities/indian-steel-mills-face-margin-squeeze-as-global-coking-coal-prices-rise/article71363850.ece"
  },
  "original_language": "en",
  "account": "Indian steel mills are grappling with declining profit margins as coking coal prices soar, driven by supply issues in Australia, China, and the Iran conflict. India, the world's second-largest crude steel producer after China, relies heavily on imported coking coal, meeting 95% of its needs, with at least half sourced from Australia. Coking coal constitutes nearly 40% of steel production costs, and rising prices could hamper investment and capacity expansion as domestic demand surges due to infrastructure projects and robust economic growth. Premium hard coking coal prices surged 25% from last year to an average of $236 per metric tonne freight on board (FOB) in Australia during the first seven months of 2026, according to Banmeet Khurmi, a lead at CRU consultancy. This price increase is attributed to supply disruptions in Australia, slower-than-expected mine expansions, support from the Middle East conflict, and a significant accident in Shanxi, China. Costs are likely to stay high in the second half of the year due to the supply loss from the Shanxi coal mine accident. For blast furnace-based steelmakers, every $10 rise in coking coal prices adds $7-$9 per metric tonne to steelmaking costs, noted an executive from a major steel mill, who could not speak to the media. Higher coking coal prices have squeezed margins, with little room to increase steel prices, given the competition from cheaper Chinese steel. Shipments from China have risen despite import tariffs on some grades. Coking coal imports are projected to increase by 2-3 million tonnes in 2026-27 from 64 million tonnes the previous year, according to BigMint consultancy. Trade flows have tightened due to high demand from India and increased diesel, freight, and insurance costs, said Hui Ting Sim, vice president at Moody's Ratings. While Australia is set to meet at least half of India's coking coal requirements, imports from Russia, Mozambique, and the United States are also expected to rise. Russian coal discounts, which made up 24% of India's coking coal imports in recent years, have waned over the past two years, Khurmi added. Long-term, Mozambique is expected to surpass the United States and Russia as the second-largest exporter of coking coal to India after Australia, said Brooks. Indian steelmakers like state-owned Steel Authority of India and JSW Steel are turning to Mozambique for supplies. India has been working on diversifying its coking coal imports and exploring access to Mongolia, but experts say these efforts remain challenging due to logistical difficulties.",
  "summary": "India, the world's biggest crude steel producer after China, meets 95% of its coking coal needs through imports, with at least half shipped from Australia",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}