Amid the sharp rise in imported coal prices since Apr’21, coal handling across various Indian ports has declined by 20% q-o-q to 62.2 million tonnes (mn t) during the second quarter (Jul-Sept’21)of financial year FY’22 against 77.4 mn t in the previous quarter of Apr-Jun’21, according to CoalMint’s provisional data.
Paradip handled the highest quantity of coal followed by Vizag and Haldia. The total quantity of coal handled by these three ports during Jan-Sep’21 stood at 57.1 mn t, 26.6 mn t and 7.38 mn t respectively.
Key port’s coal handling
| Ports | Q2 CY21 | Q3 CY21 | % Change |
| Krishnapatnam | 7.13 | 4.48 | -37 |
| Kandla | 4.68 | 2.63 | -44 |
| Gangavaram | 3.67 | 2.47 | -33 |
| Mundra | 4.21 | 2.23 | -47 |
| Mangalore | 1.74 | 1.86 | +7 |
Qty in mnt
It can be seen from the table above that the highest decline in coal handling was recorded at Mundra Port followed by Kandla Port in Q3’CY21.
There had been a sharp rise in global coal prices starting May this year amid tight supply from exporting countries, coupled with a robust demand in China. Resilient vessel freight rates further weighed on Indian importers, denting their appetite for bulk bookings.
Availability of the cheaper domestic coal during the quarter also led to a decline in imports from the country, before the situation reversed in mid-September amid lower domestic coal stock at power plants.
Short-term outlook
CoalMint believes, coal handling at ports is likely to show a gradual increase in Q4’CY21 amid the acute domestic coal shortage in the country that has prompted traders and end-users to book high-priced imported coal.
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