Russian coal takes almost 90% of India's PCI imports and 27% of coking coal

Russian producers accounted for almost 90% of India's imports of pulverised coal injection (PCI) fuel between 1 and 25 September 2026 and for 27% of the country's seaborne coking coal imports, Kommersant reported, citing calculations by BigMint based on vessel arrival data.

Seaborne coking coal imports into India rose 11% from August to 5.9 million tonnes over the period. Australia supplied 3.29 million tonnes and Russia 1.6 million tonnes. PCI imports moved in the opposite direction, falling 34% to about 590,000 tonnes, of which 530,000 tonnes came from Russia and the remainder from Australia. Russia's near-90% share was therefore achieved in a contracting segment, while its 27% coking coal share came in a month of rising total imports.

Price and blending quality behind the share gain

Data from Argus cited by Kommersant show Russia was already the leading PCI supplier to India earlier in 2026, but with a share of around 60–70%. In coking coal, Russian exporters remain in second place, behind Australia only.

“Russian coal is traditionally offered cheaper than Australian at comparable quality,” said Oleg Emelchenkov, junior director for corporate ratings at Expert RA. “The consistently low impurity content and high volatile matter of Russian material complement Indian domestic coal well when blended in blast furnaces.” The Center for Price Indices said Russian PCI is in demand in every market it can physically reach, reflecting both its quality and limited PCI availability overall, including Australian material in the seaborne trade. Analysts there described the rise in Russia's Indian share as an established process driven by growing consumption and import demand rather than a new shift. Alexander Kotov, consulting partner at NEFT Research, said large Indian steelmakers use Russian PCI for blending with more expensive grades such as Australian coal.

Steel capacity expansion underpins demand

India increased steel output by 6% year on year in January–August 2026, to 115.9 million tonnes, according to the World Steel Association.

Argus expects Indian steelmaking capacity to grow from 220 million tonnes in 2026 to 300 million tonnes in 2030, which would lift imports of metallurgical raw materials. Buyers are expected to diversify their sourcing and cut purchases from Australia in favour of Russia, the United States and Mozambique. Argus noted that delivery cost remains the key factor for importers.

Logistics caps the upside

Both analysts pointed to transport constraints as the main brake on further Russian gains:

• On the southern route, rail approaches lag behind port capacity, according to Emelchenkov.
• A shortage of vessels and rising freight rates are pushing up delivery costs.
• Loading problems in the Azov–Black Sea basin are expected to keep shipments under pressure until the end of the year.

Kotov said the potential for higher Russian PCI volumes on the Indian market remains, but logistics is the principal obstacle to realising it.

Other destinations in focus

Emelchenkov identified China as the most realistic outlet for Russian metallurgical raw materials — the largest market, but a highly competitive one — alongside Vietnam, where blast furnace expansion is increasing coal requirements. He also listed South Korea and Japan as potentially attractive markets: solvent, but limited in volume and demanding on quality and reliability of supply.