India: Coal Imports decline by 5% M-o-M in Aug’14

Coal imports in India, the world’s 3rd largest Coal importing country, have declined by 5% to around 18 MnT in Aug’14 against the previous month. 

Total Coal imports stood at 18 MnT in Aug’14, which has increased by 25.8% compared to 2013 and decreased by 5% than the last month. On the other hand, steady demand from the country’s Power & Steel sector with heavy monsoon may have direct impact on imports.

India’s import comprises of 79% (14.3 MnT) power-generating thermal Coal and 19% (3.5 MnT) Coking Coal. Total monthly imports also include 0.20 MnT of Met Coke majorly imported from China, Poland, Japan & Russia, which made up the rest of its total imports during Aug’14.

Out of the total imports, about 80% caters the need of India’s power generation and its share is growing at a constant level despite of local shortage of fuel.

Qty: MnT

Indonesia, Australia, South Africa, Canada and Chile were the major suppliers of Coal at the end of month. India  imported 11.8 MnT Coal from Indonesia and registered a jump of 3% against the prior.

In line with increase in recent years, India’s total imports crossed 55 MnT during Q1 FY15 (April-June).To follow the trend, few market analysts forecasted that total imports may reach near about 200 MnT in FY15, which would be about 10% higher as compared to 181 MnT imported in FY14.

SteelMint assessed that Mundra port has imported highest quantity i.e. around 3.4 MnT in Aug’14, followed by Krishnapatnam port in terms of imported quantity around 1.7 MnT of Coal.

Adani Enterprises, Adani Power, SAIL and Tata Steel are the major importers of Coal; importing around 2.2 MnT, 1.9 MnT, 1 MnT and 0.68 MnT respectively.