Thermal coal vessel arrivals at Indian ports increased by 39% m-o-m in the first half of February 2023 (1-15 January) to 5.87 million tonnes (mnt), CoalMint’s vessel line-up data show.
Imported cargo inflow increased after the government’s recent mandate obligating operators of coal-based power plants to increase inventories by importing at least 6% of their coal demand by weight and easing restrictions on coal blending for power generation.India has been focusing on improving domestic coal production to achieve its FY23 target of 900 mnt of coal production. India’s largest coal producer, Coal India Ltd. (CIL), saw production growth of 11% y-o-y to almost 72 mnt in January. CIL’s production edged up by 8% m-o-m. Indonesian cargoes hold highest share Out of total imports in the first half of February, volumes of Indonesian coal were the highest at 2.77 mnt. Some major trading companies that bought Indonesian coal were Adani Enterprises at 0.44 mnt and Agrawal Coal at 0.35 mnt. About 2.22 mnt is expected to be imported in the second half of this month from Indonesia. Indonesian coal importers (1-15 January, 2023)
Qty in mnt
Shipments from Australia riseIndia’s imports of Australian coal were recorded at 1.03 mnt. Again, Adani Enterprises was the top buyer. Import volumes have increased m-o-m compared to 0.78 mnt during 1-15 January. About 0.21 mnt of Australian coal is expected to arrive at Indian ports in the second half of February. Australian coal importers (1-15 February)
Qty in mnt
Shipments from South Africa up
Shipments from South Africa were recorded at 0.98 mnt in the period under review, up slightly against 0.82 mnt in the same period in January. The Rashmi Group was the largest importer at 0.2 mnt.
India is importing more of 4800 NAR grade coal, as 5500 NAR grade coal is quite expensive. About 0.34 mnt of thermal coal is expected to be shipped in the second half of this month from South Africa.
Other exporting countries Shipments from Russia picked up slightly to 0.36 mnt in the period under review compared to 0.33 mnt in the first half of January. Shipments from the US also inched up to 0.28 mnt compared with 0.25 mnt in the same period in January.
Outlook
India’s coal imports are expected to increase in the coming months as the power ministry on 20 February invoked emergency powers and asked the imported coal-based power plants to ramp up output to full capacity from 16 March for next the three months to cater to peak summer demand. The power ministry’s decision comes due to expectations that power demand would peak to 229 GW in April. The ministry’s directions have been issued under Section-11 of the Electricity Act, 2003.
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