India’s coking coal imports for the first six months of the current fiscal (April – September) were at a six-year-high at 29.6 million tonnes (mt) with shipments from Russia witnessing a substantial rise of over 200 per cent during this period. Shipments increased by around 3 per cent on a y-o-y basis, against 28.8 mt in the comparative period last year.

Current coking coal imports are higher than the H1FY20 levels of 29.3 mt; while it had dropped to 21.1 mt in H1FY21. However, it has been rising steadily since H1FY22 when it stood at 27.7 mt; and then to 28.8 mt in H1FY23; as per data from market intelligence firm, BigMint. “The rising coking coal imports have coincided with higher steel production in India,” a market participant told businessline.

India’s crude steel production was at 73 mt (apprx) for 6MFY25, up 4 per cent y-o-y, as per Steel Ministry data.

  • Also read: India to ramp up coking coal production by 20% to 80 million tonnes in FY 25
Russia gains

Incidentally, Indian mills continued to take advantage of discounted supplies of coking coal from Russia. However, they have reduced sourcing from Australia — still the largest supplier of the key steel-making feedstock. India is the second largest producer of crude steel after China and the largest importer of coking coal.

Russian coking coal shipments – now at a six-year high — saw a near 40 per cent y-o-y jump in H1FY25 to 4 mt, as against 2.9 mt in H1FY24. Russia is the third largest supplier — after Australia and the US — to India’s mills, BigMint data showed; with state-run SAIL and JSW being amongst the key buyers, sources said.

Significant increase in Russian coking coal shipments — since H1FY22 at 0.7 mt to 0.9 mt in H1FY23 and then an over 200 per cent increase to 2.9 mt in H1FY24 — saw the country nearly catch-up with the US during the period under review. Shipments from the US was at 4.3 mt for the first six months of the fiscal.

Australian supplies down

On the other hand, share of Australian coking coal to total import was significantly down, volume wise, to 54 per cent at 16 mt (out of 29.6 mt), a six-year low (on a H1 comparative basis).

Australia’s coking coal supply share was as high as 80 per cent in April–September of FY22 period, at 21.7 mt . It came down to 65 per cent or 18.7 mt (out of 28.7 mt) in H1FY23; and then to 62 per cent at 17.7 mt a year later (H1FY24). In the earlier years it had hovered around the 70–75 per cent range. “Mills have diversified coking coal sourcing; and have readjusted their blast furnaces according to Russian coking coal requirements,” the market participant said.

Data also show flattening or slight increase in buying of coking coal from other traditional sources like Mozambique and Indonesia. However, buying from Canada has seen a decline in view of ongoing diplomatic row and better pricing offered by others.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts