Thermal coal traffic at Indian ports surge nearly 30% in June amid domestic crunch

Thermal coal traffic handled at India ports has risen by a whopping 29% m-o-m to 22 million tonne (mnt) in June’22, CoalMint data showed.

The sharp rise came amid the ongoing coal supply in the country, compelling traders to raise imports.

Total coal traffic (coking and non-coking combined) handled at Indian ports recorded a 7% m-o-m rise to 41.5 mnt, wherein coking coal shipments recorded a 5% monthly rise. 

Port traffic refers to shipments via import, export, and coastal movements between different ports within India.

Quantity in mnt

The ongoing coal supply crunch in the domestic market resulted in a rise in non-coking coal shipments last month, besides limited domestic coal supply for the non-power sector.

Coal dispatches to the non-power sector by domestic miner Coal India Ltd. (CIL) continued to remain under pressure amid heavy rainfall across several parts of the country, falling 13% last month.

Meanwhile, coking coal traffic rose by 7% in June as cargoes booked during early May were delivered last month. 

Port-wise coal traffic

As per CoalMint data, the highest rise in coal traffic was observed at Kandla and Hazira ports with 116% and 144% growth, respectively, in vessels arrivals. Paradip Port, received the largest number of shipments at 5.8 mnt, up 28% m-o-m.

Top port-wise coking coal traffic

Outlook

India’s non-coking coal traffic is likely to increase in the coming month amidst ongoing domestic supply worries. However, coking coal imports may fall due to a drop in domestic steel demand owing to the imposition of 15% export duty on finished steel.