According to the data compiled by SteelMint Research, Indian Non-coking coal imports have increased 7% on the month to 13.77 MnT in Nov’17, compared with 12.89 MnT in Oct’17. On the yearly basis, Imports were 26% higher than the levels achieved during Nov’16.
Indian Non-coking coal imports have been falling this year on account of ample coal stocks available with the consumers, as well as enhanced domestic coal supplies from CIL. However, the sudden rise in thermal power generation in the wake of lower hydro and nuclear power output in Aug’17 had created coal availability scare in domestic market.
Available coal stocks at power plants started to dwindle, as domestic coal production was not sufficient enough to cater the growing coal demand.
Moreover, the decision to cut domestic coal supply for Non-power sector in order to augment coal supplies to power stations, has also contributed in enormous growth in coal imports. MCL had asked Non-power coal consumers to order for only 80% of the monthly scheduled quantity for Oct’17 and Nov’17, and has now carried forward that in Dec’17 as well.
Coal buyers short on supply, were forced to procure coal from the domestic auction to meet their demand. Consequently, CIL’s recent coal auctions had seen aggressive buying especially from Non-power sector.
Total coal allocated in the spot e-auction rose to the highest monthly value in FY18, recorded at 4.34 MnT in Oct’17, as per the data provided by Coal Ministry. Coal allocated in Oct’17 was 42% higher M-o-M from 3.05 MnT in Sep’17, and has also gained 95% increase over the notified price.
Likewise, coal allocated in Exclusive e-auction for Non-power sector rose 61% M-o-M to 1.88 MnT in Oct’17 against 1.17 MnT in Sep’17. While, total coal allocated in Exclusive auction for Non-power sector has shown substantial increase of 180% Y-o-Y to 8.53 MnT during the Apr’17-Oct’17 period, compared with 3.048 MnT during the same period in FY17.
As a result of the low coal availability and higher auction prices, Indian Non-Coking imports has surged 17% Y-o-Y to 38.86 MnT since the last three months (Sep’17-Nov’17), compared with 33.19 MnT coal recorded during the same period in 2016.
The possible ban on Pet Coke across 4 states in the country would mean one more mouth to feed, as the pet coke consumers especially Cement industry would have to use Non-coking coal to meet their demand. The verdict on the possible ban is expected to come later this month.
Major Non-coking Coal Exporters:
Indonesian coal export rose 19% M-o-M to 9.44 MnT in Nov’17, against 7.95 MnT in Oct’17. Export to India was also 33% higher on the year than 7.12 MnT coal received during Nov’16.
South African coal export increase 2% M-o-M to 3.03 MnT in Nov’17. On the yearly basis, exports increased 14% compared to 2.67 MNT in Nov’16.
USA was the third-largest coal exporter in Nov’17. Coal Shipments from the US fell 26% M-o-M to 0.72 MnT during the month, but had jumped 239% on the year compared with 0.21 MnT in Nov’16.
Source: SteelMint Research | Quantity in MnT
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