Coal traffic handled at Indian ports has been on a declining trend since the last three years, as it was recorded at 276.9 mn t, down marginally by 1% against CY’20 and by 12% against the pre-Covid year of CY’19.
The decline in imports was majorly attributed to supply disruption arising out of Covid-19 back in CY’20 and the subsequent surge in coal prices in CY’21.
Thermal coal prices more than doubled last year due to supply disruption across major exporting countries, domestic coal shortage in two key coal consumers, China and India, and increased power demand with economies returning back to normalcy post the Covid-19 disruptions.
Coking coal prices also surged in the past two years amidst changed trade dynamics post-Chinese ban on Australia coal, more-than-expected rainfall and snowfall in major exporting countries due to the La Nina event and increased crude steel production globally.
Paradip anchors highest coal volume
Paradip Port handled the highest coal volumes (combined thermal and coking coal) in CY’21 at 47.1 mnt, up 26% y-o-y.
This was followed by Krishnapatnam Port at 23.6 mnt which, however, fell by 12% y-o-y as higher imported coal prices dented buying appetite of importers and end-users.
Gangavaram Port witnessed the highest decline in cargo volumes to 14.8 mn t in CY’21, down by 22% y-o-y. The port majorly receives South African coal and the sharp rise in its prices over the most part of the year compelled the sponge iron sector to reduce their capacity utilisation.
Dhamra and Vizag ports recorded the highest decline by 35% in coking coal traffic in CY’21, while that of Haldia Port recorded an 11% y-o-y rise in traffic at 8.4 mn t in CY’21.
*Quantity in mn t
Thermal coal traffic at Paradip Port rose sharply by 30% y-o-y to 32.3 mn t, while that to Krishnapatnam fell by 16% y-o-y to 19.1 mn t in CY’21.
*Quantity in mn t
Outlook
Amidst the persistent rise in global coal prices since the beginning of CY’22, coal import traffic at Indian ports are likely to be limited.
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