Indian steel mills face margin squeeze as global coking coal prices rise

Indian steel mills are facing margin pressure as higher coking coal prices—driven by supply disruptions in Australia and China and by the Iran war—push up steelmaking costs, executives and analysts said Aug 19. India, the world’s largest crude steel producer after China, imports 95% of its coking coal needs, with at least half shipped from Australia. Coking coal makes up nearly 40% of steel production costs. Premium hard coking coal averaged $236 per metric ton FOB Australia in the first seven months of 2026, up 25% from last year, consultancy CRU reported, citing disruptions, slower mine ramp-ups and conflict-related price support. Analysts warned costs may stay high into the second half, with the Shanxi coal mine disaster reducing supply.