In a significant turn of events, Dubai-based DP World, a major global trade facilitator, detected a cyberattack on Friday, leading to restricted access at four of Australia’s largest ports. This disruption is anticipated to persist, impacting the flow of goods in and out of the country.

The aftermath of this cyber incident has immediate implications for India, a significant importer of Australian goods, particularly coal, which constitutes over 96% of India’s annual imports from Australia, totaling around $17 billion.

Australia, being a major supplier of coking coal to India, is vital for steel production. The disruption in coal supply may result in a surge in coal prices for Indian steelmakers. Coking coal prices have already experienced a notable increase of about $100 per tonne in the last six months, reflecting a rise of nearly 40%, according to SteelMint data.

India, grappling with a growing demand for coal, faces additional challenges as domestic producers struggle to meet the rising power generation needs. The average monthly shortfall in coal availability between April and September 2023 ranged from 1.8 million to 8.1 million tonnes, as reported by RK Singh, the minister for power and renewable energy.

The impact extends beyond the coal sector, affecting steel prices in India, which have already witnessed a decline due to decreased demand in recent months. Spot prices of hot-rolled coil have dropped from ₹75,000 per tonne in May 2022 to ₹56,500 per tonne. The interconnectedness of these factors raises concerns about the overall economic repercussions.

As authorities work to address the cyberattack and its consequences, industries and markets remain on edge, closely monitoring developments that may influence trade dynamics and economic stability.

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