Although India imports only half as much as China in 2017, it will overtake China as the world’s largest importer of coking coal by 2025, according to Fitch Solutions Macro Research, an authoritative international consultancy.
“We expect India’s coking coal consumption to grow at an average annual rate of 5.4 per cent between 2019 and 2025, mainly due to the same strong growth in steel production in the country,” the report said. As a result, we expect India to overtake China as the world’s largest importer of coking coal by 2025.” While China still dominates overall market share, India will become increasingly important in terms of maritime demand. In the second quarter of 2019, India was Australia’s largest importer of coking coal, up 25.8 per cent from a year earlier, followed by China, down 8.8 per cent from a year earlier. Globally, as China will continue to account for about 2/3 of global coking coal production and consumption in the coming years, trends in the country’s mining and steel industries will continue to have a dominant impact on seaborne prices. However, with the economic slowdown, especially China’s domestic supply-side reform, coking coal consumption has shown a downward trend.