India’s imports in March 2022 recorded a whopping rise of 109% m-o-m amidst limited stock availability at ports. The thermal coal stock at Indian ports in last week of Feb’22 averaged at around 9 mn t against the previous months average of 11 mn t.
Shipments rose amid the expectation of tight supply going ahead and higher coal prices surrounding the Russia-Ukraine crisis that prompted Indian buyers to make bookings.
Indonesia supplied the highest volume of thermal coal last month as shipments rose sharply by 166% m-o-m to 10.9 mnt.
Buyers in the power sector booked Indonesian coal in order to build up inventory for the summer season when energy demand shoots up drastically.
Shipments from South Africa rise by 39%
Tight portside stock of South African coal at Indian ports and limited domestic supply to the non-power sector also compelled buyers (traders and sponge iron units) to import more coal last month. Import shipments from South Africa were at 3.2 mnt, up 39% m-o-m in March.
Thermal coal stock at Gangavaram Port were lower by 16% m-o-m last month, CoalMint data showed.
Imports from Australia, USA up
Import shipments from Australia also recorded a m-o-m rise of 28% in March at 1.2 mnt, while those from USA went up by 109% m-o-m to 0.8 mnt, CoalMint data showed.
Indian cement manufacturers were heard to be importing high-CV coal from these origins in an attempt to stockpil ahead of the monsoon season.
Imports from Russia were at 0.14 mn t last month as cargoes booked during Feb’22 arrived at Indian ports.
Sector-wise imports
Sponge iron: Thermal coal imports by the sponge iron sector recorded a sharp rise of 202% m-o-m to 1.6 mnt in March. Tight domestic supply and limited stock at ports pushed sponge iron units to scale up imports to keep their plants running.
Power: Limited inventory also compelled power producers to raise their imports to 3.3 mnt in March, higher by 86%. Power plants based in the coastal belt increased their imports ahead of the summer season.
Cement: Thermal coal imports from this sector rose by 93% m-o-m to 0.7 mnt in March.
Outlook
As per CoalMint’s analysis, import shipments are likely to remain in a similar range for April. However, elevated prices in the wake of fresh sanctions on Russia may limit any sharp rise in imports.
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