JSW Steel, India’s third-largest producer, plans to increase coking coal imports from Australia and the US by as much as 40% next fiscal year as it raises production. Imports will climb to about 7 million metric tonnes in the year from April 1, part of which will come from JSW Steel’s US mines. Capacity at its Vijayanagar factory in Karnataka is slated to increase 47% to 10 million tonnes by March. India’s steel demand, which rose about 8% last fiscal year, is forecast by the government to grow 10% this fiscal year, helped by spending on roads, ports and automobiles.
JSW Steel, which imports all its coking coal, has built its plant to limit coal usage as prices climb because of supply disruption caused by flooding in Australia, the world’s largest exporter. JSW Steel, which earmarked $500 million for acquiring coking coal assets overseas, is seeking mines in Australia and Africa. The company bought coking coal assets in the US in May and plans to start shipments from the mines this quarter.
