Coal news and updates

‘Indian coking coal buyers need to evolve on pricing’

Indian coking coal buyers have to evolve from being price takers and become price makers going forward, said Puneet Jagatramka, Executive Vice President of Raw Materials and Opex, JSW Steel.

“JSW is acquiring and developing domestic coking coal blocks, such as Parbatpur and Sitanala in India, to increase its self-sufficiency. This move aims to reduce the overall import bill and provide a stable, long-term supply of raw material. The company is utilizing various financial tools, including hedging, to manage commodity price volatility. This approach helps to cushion the impact of sharp price swings in the global spot market,” said Jagatramka was speaking at panel discussion organised by the Indian Steel Association (ISA) conclave on criticality of index in buying coking coal.

JSW Steel is reliant on imported coking coal, with over 80-90 percent of its requirement sourced from overseas. This makes the company highly sensitive to global price fluctuations and supply chain disruptions. JSW Steel is actively working to reduce its reliance on a single supplier, primarily Australia. The company has been exploring alternative sources from countries like the US, Canada, Russia, and Mozambique to mitigate geopolitical and logistical risks. This diversification also helps in managing price volatility by accessing different regional markets.