India: Coking coal imports rise marginally, met coke imports surge in October

India’s coking coal imports rose by only 4% m-o-m in October 2022, as per Coalmint data. In January-October 2022, imports remained largely unchanged y-o-y at 46.72 million tonnes (mnt).

However, India’s met coke imports rose by 181% m-o-m to 510,000 t in October. Imports from China rose by 277% m-o-m to 190,000 t, followed by Colombia and Poland.

Coking coal prices, which had fallen below $200/t levels in August, crossed the $300/t level in October. This came as heavy rains in Australia led to supply disruption, affecting mining operations and supplies.

The rise in coking coal prices forced Indian steel mills to make need-based purchases to restock coal inventories. It also forced mills to opt for Chinese met coke, which at present is cheaper by 10-12% against coking coal conversion costs into met coke.

Imports from Australia and Canada rise

Qty in mnt

India’s imports from the US and Canada plunged in October as the voyage time from these countries is 45-60 days and thus bookings for the same would have been made in August-end (when prices were rising). In the case of Australian coal, although the rise has been in percentage terms, volumes grew only by 0.47 mnt and that too quantities booked under long-term contracts arrived at Indian ports.

Imports by major steel companies recorded fall

Qty in mnt

Coking coal imports by the major steel companies declined in October. SAIL imported the highest volume of 1.29 mnt in October, but recorded a fall of 24% m-o-m followed by JSW Steel and Tata steel. However, imports by RINL increased by 9% m-o-m.

Dhamra Port receives highest quantity

Qty in mnt

In October, Dhamra Port received the highest volumes at 0.98 mnt, up by 18% m-o-m. Imports from Mormugao and Vishakhapatnam also rose. Shipments from Haldia, Paradip and Jaigarh fall by 28%, 43% and 31%, respectively.

Outlook

India’s coking coal imports are likely to remain in the same range due to steady domestic steel demand and rising coking coal prices. CoalMint expects more of cheaper Chinese met coke coming into India, which may negatively impact coking coal arrivals into the country.