India: SA thermal coal arrival reduces drastically amid elevated prices

The vessel-line-up data (as on 4 Aug’21) maintained with CoalMint reveals that a total volume of 4.85 million tonnes (mn t) of thermal coal is set to arrive at various Indian ports between 4-25 Aug’21.

Out of this, only 80,000 tonnes (t) of coal are coming from South Africa during the said period, which stood at around 2.5 mn t (in 20 days’ span), at the start of 2021.

Vessel arrival of South African coal has reduced drastically especially since June due to:

  • A sharp rise in its thermal coal prices that have risen by 33% against May’21 prices.
  • Weak demand from sponge iron sector.
  • Increased availability of domestic coal.
  • Escalated freight rates.

Adani Enterprise is the major buyer of South African coal with 0.32 mn t arriving followed by Arcelormittal Nippon Steel with 0.13 mn t, and IMR Resources with 79,503 t.

Gangavaram and Krishnapatnam ports are to receive the highest quantity of South African coal with 0.24 mn t and 80,157 t, respectively.

Despite its surging coal prices since the last few months, Indonesia remains the top importing destination for Indian buyers over the last few months as it caters to a varied range of industries from power to chemicals.

Though procurements by such industries have reduced due to the ample availability of domestic coal in the country, these industries continue to procure Indonesian coal for blending.

A total of 1.75 mn t of Indonesian coal is to arrive at various ports in the country with Adani Enterprise and Adani Power being the top buyers. This is followed by 0.81 mn t of South African coal with Adani Enterprise and Arcelormittal Nippon Steel being the top two importers.

Country Quantity in mn t
Indonesia 1.75
South Africa 0.81
Australia 0.77
The US 0.22
Russia 0.17

*Qty in mn t

Mundra Port to receive highest quantity of thermal coal

The highest quantity of thermal coal, at 0.72 mn t, is arriving at Mundra Port with the maximum quantity of 0.33 mn t from Indonesia, 0.23 mn t from Australia, and 0.17 mn t from Russia.

Krishnapatnam Port is the second-highest receiver with 0.14 mn t coming from Australia, 99,005 t from the US, 80,157 t from South Africa, and 74,120 t from China.

Hazira Port is the next highest receiver of thermal coal at 0.54 mn t with 0.34 mn t arriving from Indonesia and 0.13 mn t from South Africa.

Adani Enteprise tops the list of importers

Adani Enterprise’s highest volume of thermal coal, at 0.35 mn t, is set to arrive at Hazira Port, followed by Gangavaram with 0.33 mn t, Dahej and Krishnapatnam with 0.22 mn t each, and Navlakhi and Mundra ports with 0.16 mn t and 58,872 t, respectively.

Adani Power is the second highest receiver of thermal coal at Mundra Port with 0.16 mn t of Indonesian coal.


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