Power and Steel sector registers Drop in Coal Imports in CY19

According to vessel line-up sector wise data for coal import maintained by CoalMint Research, the Coal based power plants captive power plants, cement plants, sponge iron plants, industrial consumers and coal traders are the major importers which majorly imports non-coking coal.

Now if we analyse the non-coking coal imported by various parties in CY19, there has been increase in the non-coking coal imported by the traders whereas power plants and sponge iron manufacturers have reduced their imports y-o-y basis.

During Jan-Dec'19, traders imported about 90.5 MnT of non-coking coal against 76.3 MnT in CY18. The power-plants imported about 65.2 MnT of non-coking coal against 66.9 MnT in CY18 whereas sponge iron manufacturers included under steel sector imported 15.6 MnT in CY19 against 66.9 MnT in previous year.

The thermal power demand and generation in India witnessed a decline in CY19 resulting in drop of non-coking coal imports. This slackness in electricity demand is being attributed to both seasonal factors like extended monsoon and moderation in demand from the industrial segment. Whereas in case of steel sector the demand for thermal coal by the domestic sector remained subdued amid the slump globally.

As the two major sectors power and steel opted for lower imports due to poor demand, traders restored to higher imports because of cheaper prices in the international market and also in anticipation to meet the domestic end-users demand in case if need arise and to re-direct the same to other countries.

There has been increase in coal import by cement sector which has almost doubled in the last four years. But the fall in imports from paper and sugar mills was met by domestic procurement.

Source: SteelMint (Provisional Data)

Source: SteelMint (Provisional Data)

Source: SteelMint (Provisional Data)