Amid the ongoing coal crunch in the domestic market, thermal coal vessel arrivals at Indian ports have risen by 10% m-o-m to 3.9 million tonnes (mnt) for the period between 20-30 July, 2022, CoalMint’s vessel line-up data shows.
The volumes are much higher than the average 10-day imports of 2-3 mnt earlier, as coal-consuming units are relying more on imported stocks to shore up inventory.
Out of total shipments arriving in the coming two weeks, vessel arrivals from Indonesia were the highest at 2.5 mnt being brought by major trading companies such as Adani Enterprise, Agarwal Coal, Saraogi Udyog, and power companies such as Adani Power and Semb Corp and Gayathri Power among others.
Indian buyers have been booking hefty volumes of coal from Indonesia amid stable prices over the past month. This comes against the backdrop of reduced import inquiries from top buyer China.
Interestingly, shipments from Russia are slated to grow a record 17% m-o-m to 417,238 t in the coming couple of weeks.
South African shipments decline
There has been a 9% m-o-m decline in shipments from South Africa at 377,004 t amid elevated prices and as the Indian sponge iron industry has been seeking cheaper alternatives.
This has been evident from a 729,58 t of Mozambican coal cargo being brought in by Jindal Steel and Power Ltd.
The leading steel manufacturer last week announced that it had taken the initiative to experiment with Mozambican VT 1 grade coal (from Vulcan Energy, formerly Vale Mozambique), which has shown positive results in sponge iron kilns of 500 TPD (tonnes per day), 350 TPD and 100 TPD capacities, wherein no mixing or blending is required.
Shipments from the USA and Australia, on the other hand, were also seen lower at 328,722 t and 165,000 t, respectively, due to its rising exports to Europe.
Receiver-wise thermal coal stock at ports
*Qty in mnt
Thermal coal stocks of Adani Enterprise continue to remain the highest at 5 mnt with major stocks at Krishnapatnam, Mundra and Navlakhi ports, followed by Adani Power at 2 mnt with stocks at Dahej, Hazira and Mundra Ports.
Short-term outlook
The constrained coal supply scenario in the country is likely to incentivise coal imports in the coming weeks, with higher shipments seen from Russia and Mozambique.
To know more about the India’s coal import demand and its changing origin preference join us at India Coal Outlook Conference. CoalMint will be hosting the India Coal Outlook Conference on 3-4 August 2022 at The Lalit, New Delhi, to discuss the key issues pertaining to domestic coal production and supply, the government’s objective of controlling imports and domestic supply gap affecting many industries, the need to increase the purchasing power of Indian steel companies in the volatile global coking coal market as well as issues related to decarbonization of the coal value chain.
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