Australian thermal coal shipments rise further, 1.5 mn t to arrive by mid-Nov’21

Australian thermal coal shipments to India have currently taken the leading spot amidst two factors. There is an acute domestic coal shortage India over the last few weeks, and  the advantage of the relatively cheaper Australian prices.

Consequently,  a total leading volume of 1.5 million tonnes (mn t) will arrive in India by 16 Nov’21, CoalMint’s vessel line-up data (as on 20 Oct’21) reveals.

Adani Enterprise has booked the highest volume of 0.26 mn t of Australian thermal coal for Dhamra and Gangavaram ports, followed by Reliance Industries with 0.19 mn t at Dahej and Hazira ports.

Several cement plants, including Chettinad Cement (0.15 mn t), Ultratech Cement (0.10 mn t) and JK Cement (0.09 mnt) are also set to bring in Australian cargo.

The reasons behind the rise in shipments from Australia are:

1. The 5500 NAR grade Australian coal is cheaper by 44% from the Indonesian 5800 GAR; and
2. Volatile South African coal market and limited cargo availability from Indonesian due to heavy rains;

Thermal coal shipments from Indonesia are the second-highest at 1.03 mn t, with Adani Enterprise set to bring the highest volume of 0.28 mn t, followed by OPG Power with 0.77 mn t.

Qty in mn t

A total volume of 3.9 mn t of thermal coal is scheduled to arrive in India by 16 Nov’21, CoalMint’s data showed.

Kandla to receive highest vessel arrival

A total volume of 0.90 mn t of thermal coal is set to arrive at Kandla Port from the US (0.39 mn t), Australia (0.34 mn t), and South Africa (0.18 mn t).

Vizag Port is the next highest receiver of thermal coal during this period with a total volume of 0.48 mn t from all major coal importing destinations.

The port is set to receive 0.31 mn t of thermal coal from Australia, and 0.16 mn t from South Africa.

Krishnapatnam Port is set to receive 0.28 mn t from Australia, China, and Indonesia, while Gangavaram is set to receive 0.27 mn t from Australia, Indonesia, and the US.

Highest thermal coal receivers