A total of 2.6 million tonnes (mnt) of thermal coal-laden vessels are set to arrive at Indian ports during 23 June-10 July, CoalMint vessel line-up data revealed.
Shipments from Australia are the highest at 0.74 mnt with Tata Steel bringing in a total of 0.3 mnt, followed by Adani Enterprise and JSW Steel at 0.16 mnt each.
As Australian coal prices have eased from their March 2022 peak, Indian steel companies booked the material for their captive power plants as availability of domestic coal remained under pressure.
With the ongoing supply crunch, non-power sector in the country continue to rely upon imported coal to keep their plants operational.
Shipments from Indonesia also remained higher at 0.69 mnt with Adani Enterprise bringing in 0.2 mnt. Adani Power and Haldia Petrochemicals are also set to bring in 85,000 t and 27,500 t, respectively in the next two weeks.
With the absence of China’s buying interest, Indian traders continue to book shipments from Indonesia. However, any major bookings are limited surrounding weak domestic market conditions and as several coal-consuming units reduce operations during the monsoon.
Thermal coal shipments from South Africa are at 0.34 mnt with ArcelorMittal Nippon Steel India and Swiss Singapore bringing in the highest volumes at 0.16 mnt and 0.12 mnt, respectively.
A sharp decline in domestic steel prices have made PDRI sponge iron manufacturing almost unviable at the current coal prices, making the sector procuring only small parcel bookings.
US coal shipments are assessed at only 0.4 mnt, coming for Ultratech Cement and SAIL in the upcoming week, while shipments from Russia are at 0.17 mnt.
As per CoalMint vessel line-up data, Ultratech Cement, JSW Minerals, and Nayara Energy were the highest buyers of Russian coal this month at 0.16 mnt each.
Outlook
A domestic coal supply crunch is likely to incentivise thermal coal imports in the upcoming months. However, weak domestic demand may cap any major imports.
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