Indian steel companies are considering raising prices for various grades of steel due to the rising import costs of coking coal. This increase in costs is mainly attributed to the higher prices of coking coal from Australia, which is a major producer of the commodity. Officials from four domestic mills in India have stated that steel mills are likely to raise rates by $25 to $50 per metric ton by December. The price of Australian coking coal has surged by 50% to over $350 per metric ton. This surge is primarily caused by factors such as maintenance outages, lower supplies from Queensland, and a slower train network. Banmeet Khurmi, a metallurgical coal analyst at CRU, a commodity-focused research group based in London, has indicated that these factors have contributed to the increase in prices. Australia accounts for over half of India’s coking coal imports, which are approximately 55-60 million metric tons per year. India also imports coking coal from Russia and the United States to meet its requirements. However, due to the higher prices of Australian coking coal, Indian steel mills may turn to Russia for larger volumes of coking coal, as Russian supplies may be available at discounted prices. The significant increase in the price of imported coking coal means that the final steel products would be at least $50 per ton more expensive. This cost increase affects the production of specialty steel products, according to a company official. Amarendu Prakash, the chairman of Steel Authority of India (SAIL), has already reported that higher coking coal prices have impacted the company’s margins. Despite this, steel companies are facing the need to raise prices due to an increase in demand for Indian steel. As construction and infrastructure-related activities pick up after the monsoon season ends in September and early October, the demand for steel is expected to grow. Some steel companies have already started raising prices of hot-rolled and cold-rolled products by approximately $12 to $24 per metric ton. Prices of certain products, particularly flat steel products used in cars, have started to rise at a time when demand typically surges in October and November, coinciding with several festive celebrations in India.