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India's coking coal imports rise 16% m-o-m in Oct'24 amid higher Russian, Australian shipments

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Coking

BigMint Bureau

303 Reads

9 Nov 2024, 12:30 IST

India's coking coal imports rise 16% m-o-m in Oct'24 amid higher Russian, Australian shipments

Imports pick up on previous bookings, restocking

Russian imports surge 71% m-o-m, Australian 26%

India's coking coal imports in October 2024 rose 16% m-o-m to 4.4 million tonnes (mnt) from 3.8 mnt in September. The increase reflects growing demand from India's steel sector and was led by notable shifts in supply from countries such as Russia and Australia.

Imports picked up on prior bookings made by buyers and active restocking. However, import bookings tapered off towards the end of the month as participants took time off due to Diwali, a key festival in India.

BigMint's index for premium hard coking coal (PHCC) was assessed at $216/tonne (t) CNF Paradip, India, on 30 October 2024. The index fell $6/t against the previous assessment of $222/t CNF India on 15 October 2024.

Russian, Australian imports show growth

Australia remained India's primary supplier of coking coal, with imports rising 26% to 2.1 mnt in October from 1.7 mnt in September. Imports from Russia saw a significant 71% uptick to 0.8 mnt in October from 0.5 mnt in September. Mozambique's imports also grew, to 0.5 mnt in October from 0.4 mnt in September 2024.

JSW Steel, SAIL continue to be major importers

In terms of company-specific imports, SAIL recorded the highest imports in October 2024 at 1 mnt, compared to 0.5 mnt in the previous month. Tata Steel increased its intake to 0.95 mnt in October from 0.6 mnt in September. JSW Steel recorded imports of 0.86 mnt in October, lower than 1 mnt in September.

Dhamra, Paradip ports lead in volume

Among Indian ports, Dhamra Port handled the highest import volume in October at 0.9 mnt, up from 0.4 mnt in the previous month. Paradip handled 0.8 mnt in October compared to 1.0 mnt in September. Other significant ports included Gangavaram, which recorded a 114% rise in imports, to 0.74 mnt in October from 0.35 mnt in September.

BCCL tweaks Tranche VII coking coal linkage auction rules

As India's largest producer of coking coal, Bharat Coking Coal Limited (BCCL) aims to reduce the nation's dependence on imported coal, a critical resource for steel production.

A key reform measure introduced recently is the consortium bidding system. Under this model, multiple small consumers are able to pool their resources and collectively bid, making the auction process more accessible to a broader range of stakeholders. This shift has allowed smaller players, who might not have been able to bid independently, to participate in the auction. Another significant reform has been the approval of amendments in eligibility norms for linkage auction bidders.

Outlook

The rise in India's coking coal imports in October 2024 underscores strong momentum in the country's steel production, reflecting sustained demand in the domestic market. With increased imports from key suppliers such as Australia and Russia, alongside growing contributions from Mozambique, the shift in sourcing patterns hints at India's adaptability to a dynamic global supply environment.