India: Coal traffic at ports declines by 6% m-o-m in Nov'23 amidst drop in import volumes and tepid demand

Total coal traffic (including coking and non-coking) handled at Indian ports stood at 32.12 million tonnes (mnt) in November 2023, dropped by 6% m-o-m from 34.03 mnt in October, CoalMint data shows.

Qty in mnt

Port traffic refers to shipments via imports, exports, and coastal movement between different ports in India.

Non-coking coal traffic handled at Indian ports dropped by 9% m-o-m to 26.17 mnt in November. However, coking coal traffic rose by 12% m-o-m at 5.95 mnt in November 2023 as against 5.32 mnt in October.

India heavily relies on coking coal imports from Australia. India's coking coal imports from Australia rose on higher demand and ample availability of cargoes. This surge was triggered by India's soaring industrial needs and the urgency to secure coking coal supplies, especially amid depleting stocks.

Why coal traffic drops?

Drop in import volumes - India's thermal coal imports in November 2023 dropped by 10% m-o-m to 17.92 mnt as against 19.86 mnt in October. Low stocks level at South African Richard Bay Port and supply issues in Indonesia prompted a shift to local purchases.

Steady prices amid cautious market - In the Indian coal market, a sense of caution prevailed among buyers, leading to a drop in coal traffic as they anticipated potential price reductions. The lack of interest in seaborne thermal coal contributed to a restrained market, where key ports handling thermal coal experienced reduced activity. Market participants observed a hesitancy among buyers, signaling a wait-and-watch approach in the expectation of more favorable pricing conditions.

Key ports handling thermal coal

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As per CoalMint data, thermal coal traffic at Paradip Port was recorded at 3.99 mnt in November 2023, dropped by 4% m-o-m against 4.17 mnt in October. Krishnapatnam Port handled 3.43 mnt and Mundra, 2.95 mnt. Port traffic at Kandla and Vizag were recorded at 1.20 mnt and 1.12 mnt respectively in the month under review.

Ports handling coking coal

Qty in mnt

Paradip Port recorded the highest number of vessels in the month under review, carrying 1.31 mnt, followed by Dhamra at 0.99 mnt. Gangavaram Port recorded a significant surge of more than twofold in traffic to 0.81 mnt in November 2023 as against 0.36 mnt in October.