Coking coal market looks promising
The largest importers of coking coal from Australia invariably include India and Japan. Germany, Vietnam and Turkey are also in the lead. Investments during which steel is used increase demand for coking coal. The country with the most such investments is India. Learn about predictions for the coal market.
Who will be the largest importer of coking coal in 2025?
India is a rapidly developing country – the investments carried out in the form of infrastructure projects guarantee the demand for coking coal. The raw material that is essential when carrying out any such projects is, of course, steel. In the April-October 2023 period, India’s crude steel production was 82 million 471 thousand tons. The same period, but 2024 is already 84 million 944 thousand tons. Thus, steel production increased by 3%. Coking coal imports, on the other hand, scored a decline from 4.9 million tons in November 2023, to 4.6 million tons in the same month of 2024. Indian steel demand is expected to focus on construction and infrastructure development, although demand will also be generated by the automotive and engineering industries.
The largest supplier of coking coal to India is Australia, which is in the clear lead in this regard, with 2.2 million tons in November 2024. Countries such as Indonesia (0.6 million tons in November), Mozambique (0.5 million tons) and Russia (0.6 million tons) also have their share of India’s coal imports.
The list of companies responsible for the largest imports invariably opens with JSW Steel, which imported 1.1 million tons of coking coal in November 2024. Just behind it was SAIL, which is responsible for importing 1 million tons. The podium is closed by Tata Steel, a company that imported 0.8 million tons of coal in November. All the companies have one thing in common – they come from India.
Will China maintain its status as the world’s largest coking coal producer?
Among the largest coking coal producers, two countries stand out in particular: China and Australia. Their market share accounts for about 75%. In the lead, however, remains China, which is not only the largest producer, but also among the top in terms of imports of this raw material. In the area of exports, China does not take any market share – it directs all of its accumulated coal to the domestic market. At the other extreme, in terms of how the mined coal is disposed of, is Australia, which exports almost all of the mined coal.
According to expert predictions, global coking coal exports will receive an increase of about 6% by 2026. The country that will be largely responsible for this growth is Australia – coking coal from this country could account for up to 48.5% of global shipments – a figure that could be as high as 179 million tons.
The coking coal market is also changing dynamically, with Peabody acquiring coal assets from Anglo American – a move that leads one to believe that the company’s exports will be based on the seaborne route. The first half of 2025 is the deadline for this deal to be finalized. Under its terms, four, Australian-based mines – Moranbah North, Capcoal, Aquila and Grosvenor – will be acquired. These mines are estimated to have a production level of 11.3 million tons of coking coal, which is known to be used to produce top-quality steel.
Steel sector determines coking coal consumption
Any economic development requires the raw materials that are needed to produce steel. It is an extremely versatile material that is used in all areas of the economy. It is for this reason that the market for coking coal continues to grow – it is the desire for development that determines the demand for coal.
Coke is a raw material that is also used in the production of high-grade steel. This material takes part in the reduction reactions of iron ore, resulting in the production of pig iron. This raw material is distinguished by slow combustion and long heat retention. The sale of coke is carried out by K Investments, which also supplies top-quality products on a “just-on-time” basis, which is certainly a great convenience for companies that do not have storage space.