India’s January thermal coal imports increase steeply to 13MT

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Thermal coal import to the country increased by 25.6% to 13.16 million tonnes in January, against 10.47 million tonnes in the corresponding period of the previous year, according to the data collected from various shipping sources by Indoen.

At seven million tonnes the largest import quantity came from Indonesia, while with 3.68 million tonnes South Africa stood the second place.

Analysts and policy makers believe the steep jump could have been the result of an acute domestic shortage.

There were several occasions in the past two-three years in which Coal India (CIL) that meets about 80% of the coal requirement of the country had to cut down production levels owing to lower requirement from power sector. There were several instances of pithead stock reaching levels as high as 70 million tonnes as well.

However, from July last onward CIL had to catch up with a sudden spurt in demand resulting from increased demand for power from across the country.  

Currently the pithead stock is around 30 million tonnes.

Central Electricity Authority, a central government arm that coordinates among the power sector, data show as of February 18 there were 17 critical coal plants (plants with less than seven days’ stock) in the country, while cumulative fuel stock available with plants was 15.45 million tonnes.

A year ago these numbers were two and 25 million tonnes, respectively.

“Imports are showing an increasing trend with cargoes of higher grades being preferred as against cost effective ones,” a coal trader from Mumbai said.

With summer coming up the shipment volumes are expected to increase over the next two-three months, he added.