India’s March 2018 thermal coal imports decline 2.5% y-o-y to 11-Mt

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Following the pattern of the first two months of the year, the third month, March, also recorded marginal decline in India’s thermal coal imports. Imports in the month declined about 2.5% year-on-year (y-o-y) to 10.95-Mt.

The largest quantity of the import came from Indonesia (around 7-Mt) although this was a 5.5% y-o-y decline. Imports from Australia and the US showed remarkable growth in quantity. While import from the former grew 286% y-o-y to 581-Kt, import from the latter made a growth of 68% to 763-Kt.

Focus on high-efficiency and low emission by importers is believed to be the reason behind significant increase in imports from Australia.

“Australia could emerge as a market for Indian buyers in the foreseeable future with lot more demand for high calorific value (c.v.) coal is streaming in the domestic circuit,” a trader from Hyderabad said.

Leading traders in India don’t think that the decline in import is a prolonged one. They think it is a passing phenomenon and in the remaining part of the current year there could be a significant growth in this regard.

The trader said the marginal decline in imports now may be resulting from the increased procurements of high c.v. coal from Australia and the US that is equivalent to more than double of the same quantity of low c.v. coal from Indonesia.

“Indian miners are already struggling to meet the surging demands and will sooner or later look to import coal. The overall demand for overseas coal is expected to be 5% more than what it was in the last year,” a second coal trader from Chennai said.

“Logistical bottlenecks and surging demands from power plants is pushing the need for coal and this is likely to give a setback to government motives of curbing imports,” he added.