Indian thermal coal import from USA surged by 175% to 7.08 million metric tons (MMT) in the first half of 2018, against 2.58 MMT in the corresponding period of 2017, as per the latest data maintained by American Fuels & Natural Resources FZCO (ANR), a Dubai-based commodity marketing and trading company that deals in mainly US origin coal.
The higher volume of imports is mainly due to pick up in demand from power stations and cement plants, uncertainty on pet coke ban and high prices of alternatives.
With most of the country’s domestic coal output being diverted to electricity generators, fresh import demand for coal would arise from many industries including aluminum smelters and chemical factories.
| 2017 | 2018 | ||||||||||
| NAPP | ILB | Total | NAPP | ILB | PRB | Total | |||||
| WCI | ECI | WCI | ECI | WCI | ECI | WCI | ECI | ||||
| Jan | 124,529 | 124,529 | 723,338 | 204,887 | 160,019 | 1,088,244 | |||||
| Feb | 431,280 | 431,280 | 253,047 | 668,380 | 144,247 | 1,065,674 | |||||
| Mar | 235,967 | 235,967 | 486,939 | 532,511 | 69,975 | 1,089,425 | |||||
| Apr | 554,498 | 554,498 | 866,929 | 249,437 | 119,561 | 1,235,927 | |||||
| May | 794,122 | 175,944 | 49,000 | 1,019,066 | 631,712 | 380,102 | 145,450 | 142,230 | 1,299,494 | ||
| Jun | 129,575 | 82,057 | 211,632 | 500,842 | 467,647 | 72,395 | 92,605 | 162,224 | 1,295,713 | ||
| Jul | 77,001 | 197,500 | 274,501 | ||||||||
| Aug | 124,085 | 199,266 | 323,351 | ||||||||
| Sep | 100,900 | 324,275 | 44,000 | 469,175 | |||||||
| Oct | 591,163 | 242,000 | 833,163 | ||||||||
| Nov | 496,660 | 246,525 | 61,911 | 805,096 | |||||||
| Dec | 695,661 | 240,136 | 82,469 | 1,018,266 | |||||||
| Total | 4,355,441 | 1,707,703 | 237,380 | 6,300,524 | 3,462,807 | 1,302,073 | 1,418,736 | 728,637 | 162,224 | 7,074,477 | |
| Yearly Total | 6,300,524 | 7,074,477 | |||||||||
Over the past few months, US thermal coal, in particular, has become the most viable fuel option in terms of per Kcal cost. Apart from its competitive pricing, US coal is low in ash and moisture (7-8%) thus offering high calorific value (CV).
In this context, Vasudev Pamnani, a senior trader at ANR, opines that “India will see huge demand for the high CV coal from USA, since coals from South Africa and Australia are trading above USD 100 on FOB 6000 NAR basis and their freight rates to India are also high.”
He further adds that “India might see 11-12 MMT of coal coming from USA in 2018.”
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