Steel Authority of India (SAIL) is anticipating the arrival of four ships carrying coking coal from Russia in the September quarter, each with a capacity of 75,000 tonnes, according to Chairman Amarendu Prakash. He noted that the company had received four similar shipments in the first quarter (April-June) and expects a similar number in the quarter ending in September.

SAIL, India's largest state-owned steel producer, is also working on doubling the coking coal production capacity of International Coal Ventures Private Limited (ICVL) in Mozambique. ICVL currently has a capacity of 2 million tonnes per annum, and SAIL holds approximately a 48% stake in the joint venture, as indicated in its latest annual report.

Prakash further commented on the impact of higher coking coal prices on the company's margins and noted that Europe's carbon tax mechanism would increase the cost of Indian steel exports to Europe. He mentioned that the Indian government was developing local taxation rules and fiscal incentives to mitigate this impact.

The carbon border adjustment mechanism (CBAM), set to be introduced next month in the EU, will require importers of goods to report on the emissions embedded in their products. Importers of steel goods will start paying for emissions in their shipments from 2026, a move that India plans to challenge at the World Trade Organization (WTO).

A recent report by research firm Wood Mackenzie suggested that Indian steel producers could see the cost of their steel exports to Europe increase by 56% by 2034 due to CBAM.