Posted on 12 Apr 2022
Indian steelmakers expect smooth coking supply from Australia on the back of the recently signed Economic Cooperation and Trade Agreement (ECTA) between India and Australia. Under the agreement, the effective tariff of 2.5% imposed on most types of coal imports, including coking coal, will be eliminated, Kallanish notes.
The ECTA will bring down the import cost of coking coal for Indian steelmakers, ultimately reducing their cost of steel production.
“The signing of the Ind-Aus ECTA will help steel companies source coal and other raw materials duty-free from Australia and will boost trade between both countries in the long run,” AMNS India chief marketing officer Ranjan Dhar told local media.
“More importantly, the key raw material in steel production, coking coal, which had seen a significant price rise over the past few months, can now be imported without any duty as Australia is a major supplier of this crucial fuel. This could reduce the cost of steel production,” Dhar added.
India is dependent on imports for its coking coal requirements. The nation imported 43.35 million tonnes of coking coal in 2021, of which 31.4mt came from Australia.
Source:Kallanish
