India’s coal imports from Russia are likely to be highest in over two years in March, Reuters reported. According to the report, vessels carrying at least 1.06 million tonnes of coking coal are set to get delivered at Indian ports this month. This will be the highest since January 2020. Coking coal is amongst the main component in the steelmaking and thermal coal industry.
Notably, about 8,70,000 tonnes of coking coal are either already delivered or are expected to get delivered in India by March 20. This will be the highest since April 2020. According to refinitiv, three vessels carrying coal set sail from Russian ports to India before the Russian invasion of Ukraine on February 24.
As per the report, India is also exploring options to make payment to Russia in Rupee as the latter has been cut off from the SWIFT banking system. If the payment in Rupee gets approved, India would receive coal at a more affordable and cheaper price.
The development comes at a time when the Black Sea region is witnessing a major supply-chain blockade. Additionally, the global sanctions imposed on Russia have curtailed the trade of some key raw materials, which has threatened the global economy. In India, this development is likely to bring relief to coal-dependent sectors such as steel, automobiles, and power.
