India's SAIL flies in Mongolian coking coal as it seeks new supplies, sources say

Business Recorder reported, citing two sources, that India's Steel Authority of India (SAIL) has brought in Mongolian coking coal by air as a test. The steelmaker received a trial batch of one metric ton earlier this month and will judge whether the coal suits its steelmaking needs. The sources spoke on condition of anonymity since the trial has not been publicly announced.

Because Mongolia has no sea access and lies between Russia and China, India would likely need a longer route through Russia, given strained ties with Beijing. Shipping that way would be considerably costlier than rival suppliers, although an analyst said the coal's quality is better. SAIL will decide on long-term Mongolian supply based on the coal's suitability, plus the cost and feasibility of hauling it.

BigMint, a commodities consultancy, forecasts coking coal imports into India rising by 3% to 5% in 2026/27 from 64 million tons the previous year, since local supply falls short of steelmakers' needs. Australia is still seen as the leading supplier, while Russia, Mozambique and the United States are also projected to ship more, analysts said. Separately, Indian steelmakers have recently raised prices as coking coal costs climbed and domestic demand picked up.