India’s coking coal imports fall by 11% amid reduced demand
SAIL records highest coking coal imports at 1.35 mnt in February 2024
India’s coking coal imports in February 2024 fell by 11% to 4.56 mnt as against 5.12 mnt in January 2024, as per BigMint data. However, imports surged by 35% y-o-y to 4.56 mnt in February 2024 compared to 3.37 mnt in February 2023. The drop in India’s coking coal imports can be attributed to reduced demand within the country and subdued buying interest.
Australia remained the primary supplier of coking coal to India, although there has been a 15% decrease in imports from Australia to 2.44 mnt. This decline was attributed to the rainy season in Australia and port congestion caused by weather-related issues. Consequently, ports such as Hay Point and DBCT Port in Australia underwent maintenance in February 2024, these challenges, diverting India’s attention towards alternative sources of coking coal, such as the US and Russia. Importations from the US and Russia have consequently risen by 28% and 26%, respectively.
India’s imports from Australia stood at 2.44 mnt in February 2024, down by 15% m-o-m as against 2.87 mnt in January 2024. India’s imports from the US surged by 28% m-o-m to 0.79 mnt in February 2024 as against 0.61 mnt in January 2024.
Shipments from Canada plunged by 38% in February 2024 to 0.25 mnt as against 0.41 mnt in January 2024. Coking coal deliveries from Indonesia dropped by 41% to 0.21 mnt as against 0.36 mnt in January 2024.
Paradip port received the highest imported cargo volumes of 1.12 mnt in February 2024, Dhamra cargo import increased by 44% at 0.84 mnt. Haldia and Jaigarh ports received 0.67 mnt and 0.18 mnt, respectively. Mormugao port imports dropped by 17% to 0.50 mnt.
SAIL recorded the highest imports at 1.35 mnt in February 2024, up 5% m-o-m as against 1.28 mnt in January 2024. JSW steel recorded a drop of 18% in monthly import volumes at 1.04 mnt followed by Tata steel at 0.94 mnt (up by 49%). Bhushan Power’s imports surged significantly to 0.12 mnt in February 2024, whereas JSPL imported 0.12 mnt in the month under review.
Outlook
In the coming months, India’s imports may experience a rise. Imports from Australia, one of the top coking coal exporters to India, may increase due to the easing of supply constraints caused by its rainy season coming to an end.