Indian Non-coking coal imports have shown uptrend for the first time since FY15, despite government’s best efforts to reduce coal imports into the country.
According to the data provided by CoalMint Research, Non-Coking coal imports had totaled 153.04 MnT in FY18 (Apr’17-Mar’18), up 4% Y-o-Y against 147.60 MnT in FY17.
Indian demand for imported Non-coking coal had witnessed sudden overturn, when the domestic coal supply had come under scrutiny in Aug’17. Non-Coking coal import was down 14% Y-o-Y to 60.01 MnT during Apr’17-Aug’17, compared with 69.99 MnT in Apr’16-Aug’16.
However, during the next 7 months of the FY18 (Sep’17-Mar’18), Indian Non-Coking coal imports rose 20% Y-o-Y to 93.03 MnT, against 77.61 MnT in the same period of previous year, primarily as a result of domestic coal shortage.
Indian major coal producer-CIL had lowered its coal production in the beginning of FY18, in an attempt to liquidate the ample of coal stock available at pithead mines. But, the decision had backfired, as the coal miner was unable to meet the coal requirements of the power plants when the demand for thermal power generation had increased abruptly in Aug’17, on the back of lower hydro power generation.
In order to take immediate measures to augment coal supplies to the power sector, CIL had regulated the coal supply of Non-Power sector. Consequently, in the absence of adequate domestic supply, Indian coal import was soaring in the later parts of FY18.
On the monthly basis, Coal imports in Mar’18 had rebounded after falling to a 6-month low of 11.63 MnT in Feb’18. Non-Coking coal imports had increased 25% M-o-M to 14.48 MnT in Mar’18, which was also 5% higher on the year compared with 13.84 MnT in Mar’17.
Country-wise Coal Imports in FY18:
Indonesia remained the preferred source for Non-Coking coal buyers in India. However, imports from Indonesia had fell 2% Y-o-Y to 95.84 MnT in FY18, compared with 97.37 MnT in FY17.
Import of South African coal to India had increased 9% Y-o-Y to 36.92 MnT in FY18, compared with 33.87 MnT in FY17.
US coal market had emerged as an alternative to South African and Indonesian coal, when the coal prices were high in these markets; besides the temporary ban of Pet coke had also increased the appetite for US coal among the cement manufacturers.
Indian Non-coking coal imports from the US had recorded substantial growth of 136% Y-o-Y to 8.01 MnT in FY18.
Source: CoalMint Research | Quantity in MnT
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