India’s coking coal imports rose by 16% m-o-m to 5.1 million tonnes (mnt) in April 2022. This happened because of the fall in coking coal prices. Australian coking coal, which constitutes 72% of India’s total coking coal imports, in April 2022 saw a fall in prices up to 19% compared to the previous month.
The average monthly price of Australian premium hard coking coal stood at $474/t FOB in April 2022, down $116/t m-o-m.
Imports from Australia and Canada rise, fall for the US
Australian coking coal imports increased by 21% in April 2021 to 3.7 mnt. Imports from the US, on the other hand, are down by 15% m-o-m, to 0.51 mnt while the average monthly price saw a marginal drop of $6/t to $474/t.
Canadian coking coal imports increased by a whopping 366% to 0.34 mnt. This is because JSW Steel shifted sourcing from the US to Canada.
JSW Steel, SAIL imports rise
Imports by JSW Steel and the Steel Authority of India (SAIL) rose by 29% and 11% m-o-m to 1.36 mnt and 1.06 mnt respectively. Rashtriya Ispat Nigam Limited (RINL) imported 0.48 mnt, up 42% m-o-m. However, Tata Steel’s imports fell by 30% to 0.56 mnt.
Imports received at major ports increase
Quantity in mnt
In April 2022, Paradip Port was the largest receiver of coking coal, recorded at 1 mnt, an increase of 28% m-o-m. Imports at Gangavaram Port were up 52% m-o-m to 0.68 mnt. Mormugao Port saw a 60% increase in imports because of the influx of Canadian coking coal.
Outlook
For India, Australia’s coking coal market is of vital importance. Earlier, Indian buyers were cautious and reluctant because of supply constraints and high prices. But now, as there is a significant price drop and an improved supply situation, mills are restocking.
Meanwhile, in the near term, coking coal demand will likely remain elevated. Further fall in prices could push up further coking coal imports.
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