According to the data compiled by CoalMint Research, Indian Non-coking coal import has fallen 6% Y-o-Y to 146.35 MnT in CY17(Jan’17-Dec’17) against 156.14 MnT in CY16 (Jan’16-Dec’16).
The decline in coal imports was primarily due to the growth in domestic coal availability, aided by CIL’s initiatives to reduce coal imports into the country.
CIL had increased part supply from higher grade domestic coal sources which served as a substitute to Non-coking coal imports. The coal procurement through e-auctions were also eased by providing facilities such as flexi tenure of lifting, reduction of Earnest Money Deposit (EMD) and floor price to meet the coal demand of various consumers including Thermal power plants not having Fuel Supply Agreement (FSA).
The steps taken by CIL seemed to have worked in favor of the Government’s plans to curb coal imports in the country. As, Non-coking coal imports were down 17% Y-o-Y to 92.97 MnT during Jan’17-Aug’17 against 111.49 MnT coal recorded during the same period in 2016. Moreover, the Non-coking coal imports of each month during the Jan’17-Aug’17 was also lower on the Y-o-Y basis than the corresponding monthly total of CY16.
However, when coal shortages arise during the month of Aug’17, Non-coking imports had begun to increase. Consequently, Non-coking coal imports during the remaining period of CY17 rose 20% Y-o-Y to 53.39 MnT during Sep’17-Dec’17, against 44.65 MnT in Sep’16-Dec’16.
The buying spree during the month of Dec’17 was continued, as Non-coking coal imports had attained highest monthly total of 14.53 MnT for CY17. Import in Dec’17 was 27% higher Y-o-Y than the imports of 11.47 MnT recorded in Dec’16.
If CIL would have maintained its coal production in CY17, Non-coking coal imports might have been much lower than the current levels. Considering the rising demand of Coal, the Coal Ministry has now directed CIL to produce 630 MnT coal in FY19 (Apr’18-Mar’19).
Major Non-Coking Coal Exporters:
Indonesia and South Africa remained the chief Non-Coking coal suppliers to India in CY17; however, exports from both these countries had fallen during the year. While, Coal shipments from Indonesia fell 3% Y-o-Y, exports from South Africa were down 11% Y-o-Y in CY17.
USA had recorded the major improvement during the year, export from the country had surged 119% Y-o-Y to 5.87 MnT in CY17.
Mozambique was the other country amongst the top 6 coal exporters, who had witnessed increment in coal supplies this year. The country had exported 3.81 MnT coal to India in CY17.
Source: CoalMint Research | Quantity in MnT
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