- Paradip gets highest number of coking coal vessels
- Stocks may increase in May on restocking needs
Total coal traffic (including coking and non-coking) handled at Indian ports stood at 31.28 million tonnes (mnt) in April 2024, up by 2% m-o-m from 30.52 mnt in March 2024, as per BigMint data.
Note: Port traffic refers to shipments via imports, exports, and coastal movement between different ports in India.
Why coal traffic increased in April?
Increase in import volumes
In April 2024, import volumes increased, leading to heightened traffic at ports. Shipments from South Africa surged by 34% m-o-m to 2.6 mnt, while those from the US rose by 8% m-o-m to 1.4 mnt. Additionally, Australian shipments increased by 15% m-o-m.
Imported coal-based power plants are to operate at full capacity until mid-October 2024, increasing imports and port traffic.
Key ports handling thermal coal
As per BigMint data, thermal coal traffic at Paradip port remained stable at 4.15 mnt in April 2024. Mundra port handled 3.16 mnt and Krishnapatnam 3.55 mnt. Port traffic at Tuticorin (down by 6%) and Gangavaram (down by 64%) were recorded at 1.63 mnt and 0.34 mnt respectively in April 2024. Coal traffic at Kandla increased by 27% m-o-m to 1.29 mnt. Port traffic at Gangavaram reduced due to port agitation due to workers’ strike at the port. Consequently the material was diverted to Vizag port increasing the traffic there.
Key ports handling coking coal
Paradip port recorded the highest number of coking coal vessels in April 2024, carrying 1.36 mnt, followed by Vizag (up by 52%) at 0.91 mnt. Traffic at Haldia port dropped by 21% to 0.71 mnt in April 2024 as against 0.89 mnt in March 2024. Traffic at Mormungao and Krishnapatnam ports surged by 17% and 34% in April 2024 to 0.70 mnt and 0.31 mnt, respectively.
Outlook
Coal stocks are expected to increase in the coming week due to the anticipated surge in demand for thermal coal in India. This period signifies the beginning of stocking by buyers for the upcoming rainy season, thereby leading to a rise in imports and subsequently boosting coal traffic at ports. Additionally, the Indian government has extended the mandate for imported coal-based power plants to operate at full capacity until 15 October, 2024, foreseeing high electricity demand during summer and heatwaves. As a result, this extension will lead to an increase in coal traffic at ports. Additionally, anticipated demand growth in steel, and hence coking coal imports, are expected following India’s general election.