The drop in coking coal prices by 19% m-o-m in April, after hitting an all-time high, encouraged most Indian steel makers to book the raw material in large volumes from various origins. About 1.75 mnt is expected to arrive at Indian ports between 10-27 May.
Coking coal volumes arriving by 27 May
Quantity in mnt
Highlights
- The highest quantity of coking coal is coming from Australia.
- Integrated players like JSW, SAIL, and Tata Steel contribute to around 75% of the total purchases.
- Other buyers of Australian coal are Arjas, Jayswal Neco, and SLR metallics.
- SAIL and JSW Steel are bringing in US coking coal.
- JSW Steel is about to bring a combined quantity of 0.31 mnt of coking coal from Canada, Russia, and Mozambique and Indonesia.
- A vessel carrying 0.06 mnt is arriving from Poland for AM/NS India.
India’s coking coal stock rose by a whopping 185% on m-o-m basis to 10 mnt in the first week of May. This came amid increased vessel arrival at Indian ports during the said period. A total of 1.24 mnt of coking coal vessels have arrived at Indian ports between 1-9 May.
Quantity in mnt
Outlook
In the near term, port stocks are likely to remain at the elevated levels as the supplies for Australian coking coal have improved. In addition, fall in prices of the same will also motivate Indian buyers to increase their imports.
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