Coking Coal Imports in India: FY15 Vs FY16

Lower international coal prices along with sluggish domestic economy pushed Indian buyers to import more coal; led to records highest ever coking coal imports in FY16.

In-line with overall surge in coal imports in India since a decade, imports of coking coal crossed 45 MnT in recent ended fiscal i.e.FY16. The country had imported 47.8 MnT coking coal during the period, highest ever imports by Indian utilities. Alongside yearly imports also noted an increase of 5% over the prior fiscal, which was at 45.5 MnT in FY15.

As per SteelMint data analysis, the country imported additional quantity of about 2.4 MnT coking coal in FY16 against the last budgetary year, Lower offers was the prime driver behind surge in coal imports.

Source: SteelMint
Quantity in MnT

More than 75% imported coking coal directly go to steel production and rest quantity were opted by few coke producers to sell in open market.

Since last few years, Indian steelmakers imported additional quantity of coking coal. The major explanation to this is that Indian coal-fields lacks coking coal reserves. The non-availability of quantity and quality coking coal required for steel production compelled Indian steel producers to go for imports.

Major steel makers in India such as Tata Steel, JSW and SAIL have been fulfilling more than half of their requirement by importing coking coal. However, out of the total coking coal imports in FY16, SAIL contributed the highest share of about 12 MnT with a marginal fall in imports of 3% in FY16 as compared to FY15. Following SAIL, another major importers like JSW Steel and Tata steel imported around 10.1 MnT and 5.2 MnT quantity respectively.

Source: SteelMint
Quantity in MnT

Major exporting countries to India in FY16

India majorly buys more than 80% of coking coal from Australia. Home production meets only 13% of the requirement. Australia, Mozambique, USA and China emerged as the largest suppliers to the India in FY16. Australia remains to be the top exporter of coking coal and supplied about 39.4 MnT; registered a fall of 5% against FY15.

Major discharging ports and importers in FY16

Among the major Indian ports, Mormugao is the largest landing port for coking coal imports. Total 10.9 MnT coking coal had been exported at Mormugao Port in FY16, followed by Dhamra (7.9 MnT) and Paradip (7.8 MnT).

Source: SteelMint
Quantity in MnT

Indian Crude Steel Production FY16

Crude steel production rose 9% to 91.4 MnT in FY16, compared with 83.8 MnT in FY15. Improvement in India’s crude steel output has also reflected rising coking coal import. Meanwhile, SAIL contributed the highest about 14.3 MnT in total crude steel production with a marginal rise of 3% in FY16.

Source: JPC
Quantity in MnT