India's Steel Sector Shifts Gears: Domestic Coking Coal Auctions Set New Benchmarks

Coking coal auctions by Bharat Coking Coal Limited (BCCL) have seen increased participation from steel producers, as recent industry-friendly term modifications by Coal India Limited (CIL) aim to reduce reliance on imports. Successful bookings and promising auction feedback highlight a successful shift towards domestic coking coal use.

Recent modifications to coking coal auction terms by Coal India Limited have sparked a surge in participation from Indian steel producers. These changes aim to reduce reliance on imports by making the auctions more industry-friendly, officials said Monday.

Bharat Coking Coal Limited's (BCCL) latest round of long-term linkage e-auctions ended with record-breaking success. Of the 3.36 million tonnes offered, 2.40 million tonnes were booked. This represents a significant turnaround compared to previous auction rounds, where no coal was booked.

Industry leaders like JSW Steel and Tata Steel praised the reforms but noted that further improvements could further reduce import reliance. The shift is expected to generate premium revenues and meet government import reduction targets, with BCCL aiming to produce 2.5 million tonnes of washed coal next year to save on foreign exchange.

(With inputs from agencies.)