Indian coal imports from South Africa continued its downfall in Mar’18, as improved domestic coal supply had slightly lowered the appetite for imported coal.
According to the vessel line-up data compiled by CoalMint Research, Indian coal imports from South Africa’s premium port Richards Bay (RBCT), was down 10% on the month to 2.48 MnT in Mar’18, which was also 22% lower on the year compared with 3.15 MnT in Mar’17.
It was the third time in a row that Indian coal imports from RBCT had fallen on the monthly basis. Besides, the import volume had also dropped to a 7-month low total in Mar’18.
The volatile South African coal prices has played a key role in keeping Indian buyers away for spot purchasing, since the beginning of the CY18. South African coal prices, which had come down in Mar’18, have now been rallying back in Apr’18.
While Indian coal buyers were in a buying spree in the later periods of CY17, amid the domestic coal supply crunch. Cautious buying was seen in CY18; as buyers initially had withheld from purchasing at high prices and were later looking for prices to come down to conclude the deal.
Improvement in Domestic Coal Supply:
With the increased coal production in recent months, and comparatively better stock position in power plants, CIL had augmented coal supplies to the Non-power sector as well, which is the major end-user of South African coal.
The volume of coal offered by CIL through spot e-auctions recovered in Feb’18, after a sizeable decline in Jan’18. A total of 7.14 MnT coal was offered in Feb’18, up 28% from 5.56 MnT in Jan’18, with the latter down 43% on the month, from 9.72 MnT in Dec’17, as CIL focused on supplies to power plants.
On the back of higher coal offered in Feb’18 spot auctions, the corresponding sale figures from the auction had also improved during the month. As per the data provided by Coal Ministry, the coal allotted through spot auctions was 5.96 MnT in Feb’18, up 30% on the month from 4.59 MnT in Jan’18. The ministry has not provided the sales figures for Mar’18.
CIL had recorded its highest ever coal dispatch to the non-power sector, with supply of 126.3 MnT coal in FY18, against last year’s total of 117.9 MnT, indicating a growth of 7.1% Y-o-Y.
However, in spite the decline on the monthly basis, India’s total coal import from RBCT in CY18, has been recorded higher on the year-on-year basis. The country had imported 8.48 MnT coal in Jan’18-Mar’18, which was 24% higher on the year compared with 6.86 MnT during Jan’17-Mar’17.
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