India’s coal imports for the month of July was 12.5 MnT including 79.1% Non-Coking Coal, 19.2% Coking Coal and 0.01% for others. Coal imports thus witnessed an increase of 24.4% as compared to last month. Non-Coking Coal imports went up by 23.9%, Coking Coal import rose to 22.6% and other coal import increased by 103.8%.
The landed materials were pre-booked during April-May 2013 when the market was stable and rupee’s value was around 55-56 against US Dollar. Coal imports in India are done mainly for the leading Power and Steel companies including PSUs and private sectors.
According to market reports, this week the Indonesian 5000 GAR coal was traded at a level of USD 58-60/MT FOB, South African RB1 grade coal is being traded at the level of USD 72-74/MT FOB. Also Australian 6000 NAR grade coal has been traded in between USD 74-77/MT FOB. India’s coal demand was on slow side comparing to expected earlier. Mostly coal buying is from Japan, apart from it the global buying is weak.
However by mid of August to early September’13, it is expected that global demand for coal may improve.
India ranks fourth in coal imports. Major source of coal imports for the country at present are Indonesia, Australia and South Africa. Coal imports to India began as early as 1985 from UK at first. Import has expanded by more than four times in the past 10 years. Imported coal accounts for nearly 15% of the total coal consumption in India.
The demand for coal is on a roll and is already much higher than supply. India is the third largest country in terms of coal consumption. The overall long-term demand for coal is directly associated with the performance of the end-user industry. In India, this mainly comprises of electricity, iron, steel and cement sector. Other industries using coal have only a marginal impact on the long-term demand for coal.