Indian steelmakers are facing renewed pressure on profit margins as rising global coking coal prices push up steelmaking costs. India remains heavily dependent on overseas supplies, importing about 85% of its coking coal requirements, with Australia accounting for more than half of these imports.
Benchmark coking coal traded around $225.50 per tonne on August 18, 2026, roughly 17% higher than a year earlier, highlighting the growing raw-material challenge for domestic mills.The impact is already visible among major producers. JSW Steel reported that its coking coal costs increased by $17 per tonne in the June quarter, while higher iron ore and coal expenses weighed on profitability despite stronger steel prices. The company expects another $12–15 per tonne increase in coking coal costs during the following quarter.
With imported coal forming a major part of blast-furnace steel production costs, further price increases could tighten margins unless steelmakers can raise finished steel prices, improve efficiency or diversify sourcing.
