State-owned Steel Authority of India (SAIL) and Visag are reportedly looking for up to one million tonnes in additional coking coal supplies this year. This follows a spot deal with BHPB, which McCloskey’s said was priced at around a top of US$105/t.
With reports India is still looking for more, Xstrata has scheduled meetings in the country during October. McCloskey reported India was also looking at suppliers in China and Russia.
While international deals are brokered, the country is also looking to boost domestic production by two million tonnes a year to avoid international high coking coal prices.
Financial Express reported domestic coking coal would by cheaper than the imported variety by Rs 2,000 (US$44) per tonne and Rs 6,000 (US$131) per tonne would be saved on foreign exchange.