{
  "id": 2142312,
  "title": "Coking Coal Prices Surge 25%, Squeezing India's Steelmakers",
  "url": "https://urgent.news/2026/08/20/coking-coal-prices-surge-25-squeezing-indias-steelmakers",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T13:30:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Latest-Energy-News/World-News/Coking-Coal-Prices-Surge-25-Squeezing-Indias-Steelmakers.html"
  },
  "original_language": "en",
  "account": "Indian steel producers are grappling with a 25% increase in coking coal prices this year, which is compressing their profit margins and delaying plans for capacity expansion, according to industry experts and executives. India is a net importer of coking coal, accounting for up to 95% of its demand. Coking coal, also known as metallurgical coal, is a crucial raw material in steelmaking, containing a higher carbon content and lower ash and moisture levels compared to thermal coal used for electricity generation. Due to supply disruptions and surging prices, the cost of premium coking coal freight from Australia has risen by 25% in the first seven months of the year compared to the previous year. This price surge stems from delayed mine ramp-up, higher prices caused by the Iran conflict, supply disruptions at Australia, and a deadly coal mine explosion in China's Shanxi province, which resulted in over 80 fatalities, making it the deadliest mining accident in China in recent years. BHP, a major mining company, stated that steelmaking coal prices have been elevated compared to CY2025 levels due to strong Indian import demand and supply disruptions in an otherwise balanced seaborne market. Indian steelmakers have increased their steelmaking capacity to around 220 million metric tons per annum (Mtpa) in the fiscal year 2026, a 10% increase year-on-year, with plans to reach 500 Mtpa by 2047, with a significant portion of it relying on blast furnace technology. However, analysts project that coking coal costs for Indian steelmakers will remain high through the remainder of the year due to ongoing supply losses from China and Australia. The Indian industry will face these higher costs without the ability to pass them on to consumers, as they compete with Chinese steelmakers, according to executives speaking to Reuters.",
  "summary": "Indian steelmakers are reeling from a jump in coking coal prices this year that is squeezing their margins and delaying capacity expansion in the steelmaking industry, analysts and industry executives tell Reuters. India relies on imports for as much as 95% of its coking coal, or metallurgical coal, demand. Metallurgical coal is a grade of coal that is one of the essential raw materials in the…",
  "key_points": [
    "Coking coal prices surge 25% in 2025, squeezing Indian steelmakers' margins.",
    "India imports up to 95% of its coking coal demand, making it vulnerable to price spikes.",
    "Supply disruptions and geopolitical tensions drive up freight costs from Australia."
  ],
  "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."
}