1. Taking stock: India’s Metallurgical Coal and Coke demand and supply outlook
Presented By:
R.Nagarajan
ED(Services)
RINL/VSP

2. COAL Uniformly distributed around the globe 29% Global Prime energy
41% Global Electricity
China accounts for half of global consumption
India is the largest growth market and consumption expected to double to 20% by 2035
Metallurgical coal has a skewed distribution across the globe and is concentrated mainly in China, Australia, Canada, Mongolia, Russia and Mozambique
Global steel production is dependent on coal either for energy in EAF or as primary raw material source for steel making through BF-BOF route

3. COKING COAL PRODUCTION & IMPORTS
China accounts for 611.MT of coking coal production – largest in the world
Australia, the second largest produced 191.1MT
Australia is also the largest exporter accounting for 65% of wolrd coking coal exports
India is the largest importer of coking coal (17% share in world Import Market) next only to Japan
China imports share is at 15% and Korean at 11%
Over the last few years steel production surged by 36% while coking coal imports have gone up by 65% in India.
80% of coking coal consumption in India is being Imported
Metallurgical coal imports in India
2016
50 MT
2015
43.7 MT
2014
36.8 MT
2013
25.5 MT
2012
31.8 MT
Metallurgical coal imports in India
75 MT
160 MT

4. COKING COAL PRODUCTION & IMPORTS
Coal India Limited (CIL):-
- Produces 50MT coking coal annually
- Only 5MT is washed and supplied to steel industry, rest is supplied to power sector and others
- plans to increase production and washery capacities
- plans to make at least 15 MT coking coal available for steel industry in the next 4-5 years
Imported coking coal is of better quality but the constraints are
- Price volatility
- Unreliable supplies
Merchants coke producers unable to bear the cost are operating at 1/3rd of their capacities
Large coke plants associated with integrated steel plants are unable to pass on the increased cost to consumers

5. COKING COAL PRODUCTION & IMPORTS
Price trend:-
- Pricing of ICC has moved to increasingly shorter term from annual pricing to Quarterly benchmarking and further to index based mechanism
- Chinese buying the coal in spot market are largely influencing the Index Based Pricing
Coking coal
HCC ($/t)
+/- % on
previous quarter
 PCI/HCC Semi-soft ($/t
Jan-Mar 2013
165.00
-2.94%
117.00
Apr-Jun 2013
172.00
4.24%
121.00
Jul-Sep 2013
145.00
-15.70%
105.00
Oct-Dec 2013
152.00
4.83%
105.50
Jan-Mar 2014
143.00
-5.92%
103.50
Apr-Jun 2014
120.00
-16.08%
90.00
Jul-Sep 2014
n/a
89.00
Oct-Dec 2014
119.00
-0.83%
87.00
Jan-Mar 2015
-1.68%
86.00
Apr-Jun 2015
109.50
-6.41%
81.00
Jul-Sep 2015
93.00
-15.7%
74.00
Oct-Dec 2015
-4.3%
71.00
Jan-Mar 2016
-8.99%
66.00
Apr-Jun 2016
84.00
3.70%
70.00
Jul-Sep 2016
92.50
10.10%
Oct-Dec 2016
200.00
116.22%
130.00
Jan-Mar 2017
285.00
42.50%
171.00
Apr-Jun 2017
193.50
-32.11%
126.00

6. COKING COAL PRODUCTION & IMPORTS
Future trends:-
- Coke quality is getting more prominent with increasing size of blast furnaces and technology upgradation
- Following table shows the size of BF coming up in the next years, all are high volume which impose stringent quality control on coke

7. HINDRANCES IN USAGES OF INDEGENOUS COAL
High ash
Low coking properties
High inerts resulting in poor M10,M40 ,CSR ,CRI
Logistics
Even after reducing ash of Indian coking coal through several beneficiation processes they cannot replace ICC unless the vital parameters MMR, Fluidity, Ash Chemistry etc. suit the requirement.

8. Steel demand is expected to grow to 255MT by 2030-31
ROAD MAP FOR INDIAN STEEL INDUSTRY
Government of India has brought out the National Steel Policy 2017 with an objective to create a Self-sufficient Steel Industry that is technologically advanced, globally competitive and promotes inclusive growth.
The policy aims at:-
-Building a globally competitive Industry with a Crude Steel capacity of 300MT by
-Increasing per Capita Steel Consumption to 160 Kgs by
Steel demand is expected to grow to 255MT by
-Explore Coal assets abroad
-Utilization of the Make in India initiatives
National Steel Policy-2017 envisages a requirement of
- 161 MT of Coking Coal
- 31 MT of Coal for PCI by
The present level of PCI which is around Kg per ton of HM has to increase to Kg
BF Coke rate from Kg has to be reduced to Kg per ton of HM.
Increased domestic availability of washed coking coal and decrease import dependence from 85% to 65% by
INDEED, IT IS A CHALLENGING TASK FOR INDIAN STEEL INDUSTRY, PARTICULARLY PUBLIC SECTOR.

9. CRUDE STEEL PRODUCTION IN 2016 World Crude Steel Production
1630 MT
China
808 MT
Japan
105 MT
India
96 MT((Capacity MT))
USA
79 MT

10. METALLURGICAL COKE PRODUCTION OF CHINA & INDIA

11. DEMAND & SUPPLY OF METALLURGICAL COKE
Total metallurgical coke production in India is around 35MTPA
Merchant coke producers contribute 3-5MTPA
-Integrated steel plants contribute the rest
Imported coke- 3.1MT in
100 MT OF COKE REQUIRED BY TO CATER TO 255MT PRODUCTION OF CRUDE STEEL

12. Coking Coal import at RINL Indigenous Coal usage at RINL
INITIATIVES AT RINL
For RINL, coal selection has been the thrust area to ensure the coke making unit to produce coke meeting the demands of blast furnace while also taking care of the Coke Oven Battery health.
Coking Coal import at RINL
3.8MT
4.15MT
Indigenous Coal usage at RINL
0.36MT
0.40MT
0.59MT
RINL uses MCC in the Coal Blend. Considering guaranteed ash content of 20 % in MCC, Blend is formulated to increase MCC% keeping minimum CSR requirement for Coke Quality in BF.
Beyond 15 % MCC in the blend, coke CSR falls below 64 which is the minimum requirement for injection of PC in BF to the extent of 100 Kg and beyond.

14. INITIATIVES AT RINL
With several years of coke making experience in 7-meter tall slot battery, RINL-VSP coined the idea of introducing the straight coal i.e. coal from a single source/mine head into its blend. The basic reasons for VSP to try for such an option are;
- To have cushioning on cost & logistics
- More flexibility in blending
- Obtain accuracy in target blend property
- Tailoring coke quality to different requirements
- Flexibility of supplier base

15. SUMMARY
Coke quality has always been a subject of prime importance for a stable, efficient and consistent blast furnace operation
Stringent requirements on the quality of coke for furnaces operating at higher top pressure (>2kg/cm2)
Apart from having low ash content and good room temperature strength indices like M10 and M40, coke should exhibit superior high temperature properties like CSR (Coke Strength after Reaction) and CRI (Coke Reactivity Index).
Production of High CSR coke needs high quality coking coals which are not available in India.
Due to inferior coking property, Indian coking coal solely cannot be used to produce coke as required

16. SUMMARY
Mitigation of above difficulty needs strong policy initiative and commitment from all Concerned on the following.
Large Scale beneficiation of indigenous coking coal
Joint task group with MoS & CIL to conduct R&D and training activities on beneficiation and coking technology
Use of optimization model to reduce cost and increase import substitution
Formulation of cost effective indigenised (Higher use of indigenous coking and non-coking coal) blends by pilot and commercial study and research works.

17. THANK YOU