Coal news and updates

India’s 2014 coal imports set to cross 200 mt

November 6: Buoyed by lower international prices over the past year and a shortage in domestic supplies, Indian companies’ coal imports in 2014 are set to cross the 200 million tons mark while imports from South Africa are set to touch a record 30 million tons (mt), if data compiled by ICMW till September are any indication.

It is not only South Africa from where India’s coal imports have risen in 2014 so far, but that from other countries too, including Indonesia, have risen sharply during the nine months of 2014 because of a soft trend in international coal prices.

The spurt was mainly prompted by on an average 25% decline in prices of coal in international markets.

For examples, prices of South African standard coal (6,000 Kcal/kg NAR) fell by nearly 24% to the current levels of around $63 per ton FOB as on November 5, 2014 as compared to prices of around $82.50 per ton FOB as on November 4, 2013, according to data compiled by ICMW.

Similarly, prices of Australian steam coal fell by around 27% to $61 per ton from $83.25 per ton a year back whereas the spot price of prime grade hard coking coal has declined by nearly 26% even as the quarterly contract price was down by nearly 22% at $120 per ton for the third quarter (July-September).

In contrast, prices of Indonesian coal (4200 kcal/kg GAR) were down only 6.50% at $36.00 per ton from $38.50 per ton as on November 6, 2013.

According to an estimate by ICMW, India’s total imports of all types of coal (coking, steam, pet coke, met coke, anthracite coal and PCI coal) during the nine months of 2014 stood at 155.33 mt, up 18.62% over 130.94 mt imported during the corresponding period of 2013.

India’s total coal imports in 2013, according to data compiled by ICMW, stood at 176.97 mt and, going by the current trend in imports so far, the prevailing prices in international markets and also because of shortages in domestic supplies, India’ coal imports in 2014 will easily cross the 200 mt level and may even touch 207 mt.

Of the total imports during the nine months of 2014, steam coal imports were estimated at 118.37 mt as against 100.21 mt in the corresponding period of 2013, coking coal at 28.68 mt (25.15 mt), anthracite at 1.33 mt (049 mt), PCI coal at 1.60 mt (1.45 mt), metallurgical coke at 2.12 mt (1.72 mt) and petroleum coke at 3.13 mt (1.92 mt).

Of the total imports of steam coal of 118.37 mt till September, imports from South Africa stood at 20.57 mt, while imports from Indonesia are estimated at around 95 mt, according to data available with ICMW.

Almost the entire or around 90% of total coking coal imports of 28.68 mt during the first nine months of 2014 are estimated to have come from Australia.

So far as South Africa is concerned, industry sources feel, “If the average monthly imports of 2.30 mt from South Africa till September are maintained, total imports will definitely cross 25 mt in the 12 months of 2014 and may even touch 27 mt.”

Incidentally, India had imported a total of around 20.68 mt of coal from South Africa in 2013.

According to indications available with ICMW, India’s coal imports from South Africa are likely to cross 3.5 mt in October as prices remained significantly low during the month.