Prices of coking coal are expected to stabilise in the region of $140-150 per tonne over the next three to five years, an official of state-owned SAIL said.
"Coking coal price is predicted to stabilise between $140-150 per tonne in the next three to five years," executive director (collieries) of SAIL, S K Basak said at Bharat Chamber of Commerce.
In 2016, international coking coal prices were at a peak at $308 a tonne, which had come down $150 per tonne.
"Last month, coking coal price slightly rose to $160 per tonne due to Chinese ban of coal import from North Korea", he said.
Coking coal, a vital ingredient in the steel making process, available in the country is high in ash content.
"The government is talking about supplying coking coal with 13 per cent ash content, while we were used to 18 percent ash content for the last so many decades. Imports will continue unless the ash content is reduced to 13 per cent," Basak said.
Coal India was providing 10 million tonnes of coking coal to the steel sector, which came down to just over seven million tonnes at the beginning of the 21st century.
"The supply now is hovering at 2.1 million tonnes. This is mainly because instead of beneficiation, costly coking coal is being diverted to the power sector," he said.