India: Coking coal imports rise nearly 15% even as met coke imports edge down in September

India’s coking coal imports increased by 14% y-o-y to 4.78 million tonnes (mnt) and by 3% m-o-m in September 2022, CoalMint’s data reveals. In January-September 2022, imports remained largely unchanged y-o-y at 41.8 mnt.

On the other hand, India’s met coke imports fell by 25% y-o-y and by 10% m-o-m to 180,000 t in September. Shipments from key sources like Poland and Colombia were nil.

Coking coal imports went up this September against last year as September 2021 saw heavy rains that pushed Australian coking coal prices to as high as $400/t FOB. This forced Indian steel mills to cut down on their coking coal purchases and book more of met coke, especially from China last year.

On monthly basis, there was no significant rise in India’s coking coal and met coke imports as Indian steel demand continues to remain stable with mills sufficiently stocking up inventories bought in the previous month.

Many mills had gone under maintenance in July-August post the export duty announcement on steel by the Indian government, resulting in inventory build-up of raw materials.

Imports from Australia and Canada rise

Qty in mnt

India’s coking coal imports from Australia rose by 14% m-o-m in September at 3.06 mnt, while imports from Canada surged 135% m-o-m. The turnaround time of Canadian coal arrival is around 70 days which means that shipments that arrived in India in September were booked in July. However, imports from the US, Indonesia, Mozambique and Russia recorded a decline.

Key Importers

Qty in mnt

SAIL imported the highest volumes in September at 1.69 mnt, although volumes were 10% lower compared to the previous month. However, imports by JSW Steel and Bhushan Power surged 94% and 75% m-o-m, respectively.

Haldia Port receives highest quantity

Qty in mnt

In September, Haldia Port received the highest volumes at 1.02 mnt, up 46% m-o-m. Imports from Paradip, Jaigarh and Mormugao also increased. Shipments from Dhamra Port fell 24% m-o-m.

Outlook

Given steady domestic steel demand as well as the export duty, India’s coking coal imports are expected to remain at a more or less stable level in October.