Coal news and updates

India’s FY15 coal imports from South Africa up 51%

April 13: Indian companies’ coal imports from the Richards Bay Coal Terminal (RBCT) of South Africa jumped nearly 51% to 38.09 million tons (mt) in 2014-15 from 25.23 mt imported in 2013-14, according to data provided to ICMW by a promoter of the terminal.

This was the third consecutive year when India’s coal imports from South Africa had risen sharply. Imports in 2013-14 had risen by 19.23% from 21.16 mt in 2012-13. Imports in 2011-12 stood at 17.35 mt.

Meanwhile, imports during the first quarter (January-March) of 2015 stood at 7,920,714 tons, up 74% compared to 4,555,730 tons imported during the corresponding period of 2014.

In March 2015, imports stood at 3,095,169 tons, up 67% compared with 1,853,214 tons in March 2014, the data revealed.

India accounted for nearly 50% of the total coal exports through RBCT in the month of March and as much as 43% of the total exports during the first quarter of 2015.

The surge in imports from South Africa during the past three years was largely on account of a soft trend in coal prices and rising demand from non-power sector consumers.

In fact, supply of domestic coal to cement and sponge iron sectors in India had been falling consistently or not increasing in tandem with the rise in demand, prompting these two sectors to go for higher quantities of imported coal.

Indian cement and sponge iron companies prefer buying South African coal because of the consistency in quality, but they do so only if prices are soft, industry sources said.

India’s total coal imports from South Africa during calendar 2014 stood at 30.17 mt, up 45.89% from 20.68 mt imported in 2013.

In March, a total of 35 vessels had sailed from RBCT for India as against 28 vessels in February 2015.

Out of the 35 vessels in March, five came to Vizag (314,231 tons), four to Gangavaram Port (406,615 tons), four (313,498 tons) came to Dahej Port, three vessels (192,380 tons) to Kandla, two vessels (326,444 tons) to Dhamra Port, two to Paradip (125,772 tons), one vessels each to Bedi (161,278 ton), Jaigarh (168,480), Krishnapatnam (156,000 tons), Mundra (154,100 tons), New Mangalore (75,243 tons), Sikka (51,418 tons) and Okha (54,998 tons).

ICMW could not ascertain the location of berthing of the balance eight vessels carrying 594,712 tons of coal.

Following are the details of India's monthly coal imports from RBCT in 2015, 2014 and 2013 (in tons):