<p>New Delhi: India has abandoned a plan to form a consortium of state-run companies for joint negotiations to import coking <a href="https://www.deccanherald.com/tags/coal">coal</a>, a key raw material for steel, due to differences among mills over the grades they need, said two sources directly aware of the matter.</p>.<p>India, the world's second-biggest crude steel producer, imports about 85 per cent of its annual coking coal consumption of around 70 million metric tons.</p>.<p>"We want steel companies to come together with their might but a system where a common buyer operates will be difficult because of their varying requirements," one of the sources said, declining to be identified as discussions are not public.</p>.<p><em>Reuters</em> previously reported that a proposal for a consortium was underway to help steel mills hedge against global supply disruptions and volatile prices of coking coal.</p>.<p>Last year erratic weather conditions hit coking coal supplies from Australia, which accounts for more than half of India's annual imports, leading to a sharp spike in prices.</p>.<p>Other than Australia, India imports coking coal from the United States, Russia and Canada, among others.</p>.India plans state-backed consortium for coking coal imports.<p>The federal Ministry of Steel did not immediately reply to an emailed request for comment.</p>.<p>Some steelmakers believe they will cease to get a discount under their long-term deals if they negotiate through a consortium, a second source said.</p>.<p>The federal Ministry of Steel has urged mills to increase purchases of coking coal through spot markets to increase liquidity in the segment, the first source said.</p>.<p>Spot purchases account for 20 per cent of total trades, according to commodities consultancy BigMint.</p>.<p>Steelmakers and government officials have said that the index most commonly used is not always reflective of the market and India should formulate its own index, both sources said.</p>.<p>Indian mills usually rely on the SP Global Platts index to settle trades, BigMint said.</p>.<p>The ministry has also asked mills to diversify coking coal import sources and boost purchases from countries including Russia to cut dependence on Australia, the first source said.</p>.<p>India is also attempting to work on securing a trade route to import coking coal from landlocked Mongolia.</p>
<p>New Delhi: India has abandoned a plan to form a consortium of state-run companies for joint negotiations to import coking <a href="https://www.deccanherald.com/tags/coal">coal</a>, a key raw material for steel, due to differences among mills over the grades they need, said two sources directly aware of the matter.</p>.<p>India, the world's second-biggest crude steel producer, imports about 85 per cent of its annual coking coal consumption of around 70 million metric tons.</p>.<p>"We want steel companies to come together with their might but a system where a common buyer operates will be difficult because of their varying requirements," one of the sources said, declining to be identified as discussions are not public.</p>.<p><em>Reuters</em> previously reported that a proposal for a consortium was underway to help steel mills hedge against global supply disruptions and volatile prices of coking coal.</p>.<p>Last year erratic weather conditions hit coking coal supplies from Australia, which accounts for more than half of India's annual imports, leading to a sharp spike in prices.</p>.<p>Other than Australia, India imports coking coal from the United States, Russia and Canada, among others.</p>.India plans state-backed consortium for coking coal imports.<p>The federal Ministry of Steel did not immediately reply to an emailed request for comment.</p>.<p>Some steelmakers believe they will cease to get a discount under their long-term deals if they negotiate through a consortium, a second source said.</p>.<p>The federal Ministry of Steel has urged mills to increase purchases of coking coal through spot markets to increase liquidity in the segment, the first source said.</p>.<p>Spot purchases account for 20 per cent of total trades, according to commodities consultancy BigMint.</p>.<p>Steelmakers and government officials have said that the index most commonly used is not always reflective of the market and India should formulate its own index, both sources said.</p>.<p>Indian mills usually rely on the SP Global Platts index to settle trades, BigMint said.</p>.<p>The ministry has also asked mills to diversify coking coal import sources and boost purchases from countries including Russia to cut dependence on Australia, the first source said.</p>.<p>India is also attempting to work on securing a trade route to import coking coal from landlocked Mongolia.</p>