India: Coking coal imports down marginally in May

India's coking coal imports decreased marginally by 2% m-o-m to 5 million tonnes (mnt) in May 2022.

Interestingly, coking coal imports in the first half of the month (1-15 May) rose by 24% to 3.15 mnt as against the same period last month (1-15 April) while in the second half of May, imports were 1.9 mn t, down by 31% m-o-m, according to CoalMint data.

The rise in the first half can be attributed to the fall in prices in early-April from the March-peak which prompted Indian buyers to book volumes that arrived in May. However, in the second half, prices started going up again resulting in buyers taking a backseat.

Imports from Australia fall, USA rise

Australian coking coal imports fell by 11% in May to 3.2 mnt. Russian imports also fell by 80% m-o-m due to higher vessel freights and logistics constraints.

However, imports from USA and Canada were up by 20% and 30% on m-o-m basis to 0.77 mnt and 0.42 mnt respectively. The vessels arrived in May from both the countries were booked in March when there was panic buying by global steel mills with the onset of Russia-Ukraine war. 

Imports from SAIL, Tata Steel up

Imports by Steel Authority of India (SAIL) and Tata Steel rose by 39% and 35% m-o-m to 1.64 mnt and 0.86 mnt respectively. Rashtriya Ispat Nigam Limited (RINL) imports fell by 77% m-o-m.

SAIL's coking coal imports from Australia were up by 27% m-o-m in May. But imports by other major players like JSW Steel, Tata Steel and Jindal Steel and Power from Australia recorded a drop.

US coking coal vessel arrival of SAIL and JSW Steel rose by 74% and 93% in May.

Dhamra Port largest receiver

In May, Dhamra Port was the largest receiver of coking coal at 0.83 mnt, an increase of 35% m-o-m. Imports via Haldia Port and Jaigarh Port were up by 46% and 33 % respectively, while Paradip Port, the largest receiver of coking coal last month, saw a fall of 35 % m-o-m in shipments. Mormugao and Gangavaram ports saw a drop of 19% and 40% in imports last month.

Key ports receiving coking coal

Quantity in mnt

Outlook

India’s coking coal imports are likely to drop as domestic steel demand fell post-the steel export duty announcement and cheaper met coke booking from China. However, it is expected that coking coal imports from Russia may increase in the upcoming months due to its cheaper offers as it is lower by $200-250/t over other-origins material.