India's JSW Steel and Steel Authority of India Limited (SAIL) are negotiating with Mongolia to import coking coal and seek to diversify supply sources. JSW Steel plans to buy 2,500 tons and SAIL wants 75,000 tons.

Coking coal is a key raw material for steel production, and India relies on imports for 85% of its needs. It imports about 70 million tons every year, more than half of which comes from Australia. However, due to supply disruptions caused by weather in Australia, Indian steel companies began to explore alternative sources.

Mongolia has become an attractive option, offering higher-grade coking coal at a lower price than Australia, making it competitive for the Indian steel industry.