India, the largest importer of coking coal in the world, imported 5.3 million tonnes (mnt) in June 2022, up by 5% m-o-m.
Despite the Indian government’s announcement of imposing an export duty on steel in the last week of May, coking coal imports by the country did not fall as the bookings were made in the first three weeks of May for arrival in June. When coking coal prices fell from their March-highs in April and May, Indian steelmakers opted to book the same before the onset of monsoons, marking the rise in June m-o-m.
On a y-o-y basis, the imports surged by 51% as in June last year the country was dealing with the second wave of Covid around the same time, which impacted industrial activities and subsequent steel demand.
Steel sector sentiments in June
With the Indian government slapping an export duty on steel, the country’s finished steel production fell by 2% m-o-m in June to 9.71 mn t whereas exports of finished steel dropped by 19% m-o-m to 638,000 tonne, provisional data from the steel ministry’s Joint Plant Committee (JPC) show. This also marked the lowest export volumes since January 2021.
Imports from Australia and Mozambique rise
- Australian imports to India increased by 18% m-o-m to 3.62 mnt.
- India imported 0.28 mnt of coal from Mozambique, up by 26% from last month.
However, imports from Russia came down marginally while volumes from the US and Canada fell by 12% and 26% respectively.
Key coking coal importing steel producers
Qty in mnt
Paradip receives largest quantity of coking coal
In June, Paradip Port received the largest volume of coking coal at 10.3 mnt, up by 40% m-o-m. Imports via Haldia and Gangavaram ports increased by 10% and 7% respectively.
Key ports receiving coking coal
Qty in mnt
Outlook
With the monsoon setting in, construction activities have slowed down, impacting steel and its raw material demand. As the export duty on steel is still in effect, India’s coking coal imports may see a significant fall in July.
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