Indian coking coal imports up 17% in H1CY'24
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- Imports from Russia jump two-fold in H1CY'24
- Rising steel demand favours coking coal imports
India's coking coal imports in the first half of calendar year 2024 (H1CY'24) increased by 17% to 31.28 million tonnes (mnt) as against 26.70 mnt in H1CY'23, as per BigMint data.
On a monthly basis too, imports have risen to 6.4 mnt in June, 2024 as against 5.4 mnt in May, 2024.
India is a major importer of coking coal due to low domestic coking coal production. Indian coking coal output in H1CY'24 stood at 33.16 mnt from Coal India Limited (CIL).
Why have imports picked up?
Rise in steel crude steel production: The Indian steel sector has witnessed a 16% rise in crude steel output to 68.24 mnt in H1CY'24 from 61.2 mnt in H1CY'23. This has led to a consequent rise in coking coal imports in India. The rise in steel demand from increased infrastructure activities has favoured imports during the period under review.
Coking coal prices drop: India imports the maximum volume of coking coal from Australia amongst all origins. Prices of the Australian coking coal fell in H1CY'24 and were recorded at $294/t CNF India in H1CY'24 as against $310/t in H1CY'23. The price drop in Australia supported the imports to India.
Indian imports from Russia up two-fold
However, Indian imports of coking coal from Russia have picked up sharply to more than two-fold to about 4.46 mnt in H1CY'24 as against 2.20 mnt in H1CY'23. Indian users are actively seeking alternative sources to reduce dependence on Australian coking coal. To fill the gap, India has increased its coking coal shipments from Russia and Canada.
Imports from Australia have remained relatively stable at 17.31 mnt in H1CY'24, compared to 17.23 mnt during the same period of last year. Additionally, imports from Indonesia and the US also saw an increase during the period under review.
SAIL recorded the highest imports at 8.69 mnt in H1CY'24, up 16% y-o-y as against 7.48 mnt in H1CY'23. JSW Steel's imports increased by 26% y-o-y to 6.99 mnt followed by Tata Steel at 5.35 mnt (up 19%).
Paradip Port received the highest imported cargo volumes of 6.26 mnt in H1CY'24, up 33% y-o-y, volumes at Dhamra Port increased by 44% to 5.01 mnt. Haldia and Mormugao ports received 4.47 mnt and 3.61 mnt cargo volumes, respectively.
Outlook
Consistent growth in domestic steelmaking capacity in 2024 is expected to increase met coal imports. This will necessarily be required to sustain increased hot metal production. India's crude steel production is expected to increase by around 7% to 36.5 mnt in the first quarter of financial year 2024-25 (Q1FY'25) from 34 mnt seen in the same quarter of the previous fiscal (FY'24). India's crude steel capacity is slated to rise to 184 mnt in CY'24.
