Coking Coal Imports in India Up 7.85% in May’17 M-o-M

Coking Coal imports in India had increased by 7.85% in May’17 over the imports in Apr’17, as consumption of the coal was higher due to incremental steel production in the country.

During May’17, 4.12 MnT of Coking Coal was imported into the country, and that was higher than the imports of 3.82 MnT in Apr’17. Notably, the imports during the month under review were the highest among the monthly imports during the current year.

The imports during May’17, however, were marginally lower than the imports of 4.23 MnT in May’16.

Source: CoalMint Research

The increase in the imports during the month under review could be attributed to the rising production of steel in the country; necessitating higher procurement of the coal to cater to the increased steel production.

Notably, a break-up of the countries of the imports during May’17 reveals an interesting fact. Coking Coal imports in India from Canada had risen sharply during the month against that in the previous month. That was a result of the steel makers in the country trying to diversify their Coking Coal import markets to reduce dependence on Australia. Occasional supply disruptions in Australia result in prices of the coal increase to significant levels, which put pressure on the margins of the steel makers.

COUNTRY-WISE COKING COAL IMPORTS IN INDIA IN MAY’17

Source: CoalMint Research

Imports of the coal from Russia were also significantly higher during Mar’17 over the preceding month as a consequence of the country’s steel producers broadening the spectrum of their import markets.

Among the various ports in India, the Paradip port had handled the largest volume of the imports during the month under consideration; followed by the Mormugao and Haldia ports.

Source: CoalMint Research

Imports of Coking Coal in India are expected to remain at high levels in the succeeding month due to the increasing steel production in the country.