South African coal prices had increased since the beginning of the year. Steel mills are experimenting with coal from other regions for a cost-effective selection. India’s sponge iron producers are importing coal from different origins like Russia, Mozambique, and Australia for experiments to have a cost-effective choice.

Mozambican Coal:

JSPL steel maker has found Mozambican coal a better alternate to South Africa. However, another producer in Chattisgarh found that a blend of both Mozambican coal and South African coal would give better results.

Russian Coal:

Few mills are experimenting with Russian coal; the high calorific value (CV) of Russian thermal coal makes it cheaper than South African RB1 grade coal. Russian coal has few qualities to South African Coal, like a better Fixed Carbon (FC) value and less sulfur making it a good option for sponge iron producers. Most manufacturers found that a mixed blend of both will provide better/more effective results.

Australian Coal:

Australian thermal coal is not preferable to sponge iron producers due to its high volatile matter (VM).

Indian sponge iron producers are conducting experiments; if they find any coal or a blend of these is suitable for higher yields, then it will be a game changer for the sponge iron producers to cut the cost.

Indian steel producers will join the Indian Coal Outlook Conference on 3-4 August 2022 in New Delhi to discuss the issues relating to demand, supply, decarbonization of the coal value chain, and to increase the purchasing power.