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Russia's New Trade Route to India: A Game Changer for the Steel Industry

Russia's new trade route to India via Iran's International North-South Transport Corridor (INSTC) is proving to be a transformative development for the steel industry.

Russia's New Trade Route to India: A Game Changer for the Steel Industry

This route offers a significant reduction in coal transit time, cutting it from 45 days to just 15 days. The impact of this on the industry is profound, ensuring a steady and cost-effective supply of coal.

The importance of this route is highlighted by the recent surge in coking coal prices, which peaked at $670 per ton in 2022. For Indian steel producers like Tata and JSW Steel, the INSTC offers a strategic advantage. By utilizing this route, they can reduce their reliance on pricier Western suppliers, leading to substantial cost savings.

In summary, the INSTC not only streamlines the supply chain for the Indian steel industry but also enhances its competitiveness on the global stage. This development underscores the critical role of innovative logistics solutions in bolstering industrial growth and economic resilience.

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