India's coking coal imports up marginally in Jan'22, imports from Canada, China turns nil
India’s coking coal imports rise marginally in Jan’22, imports from Canada, China turns nil India’s coking coal imports in January were at 3.73 ...
India's coking coal imports rise marginally in Jan'22, imports from Canada, China turns nil
India's coking coal imports in January were at 3.73 million tonnes (mnt), up marginally by 1.3% m-o-m compared to 3.69 mnt in Dec'21. However, the same fell 35% y-o-y compared to Jan'21 import volumes.
Australia continued to be the top supplier of coking coal to India despite supply constraints. Imports from the country were up by 10% m-o-m while from those from USA saw a marginal dip. Imports from Canada and China were nil in Jan'22.
Australian cargoes stuck at Chinese ports had been re-routed to India in Dec'21. However, in Jan'21 no such cargoes came from China as the majority of the quantity had been sold out.
Overall, India's coking coal imports continue to remain low and range-bound against last year's monthly average of 5 mnt. This is because, although imports from Australia have risen in January on a m-o-m basis, these are still lower compared to last year's monthly average, due to supply constraints. Australia is facing more-than-average rainfall for the past three months due to the La-Nina weather pattern that has adversely affected operations at key mining areas of Queensland.
India's steel production also falls marginally
Coking coal is a key raw material for steel production and India's crude steel production in Jan'22 also fell slightly by 1.1% m-o-m to 9.81 mnt. High raw material costs and tepid domestic demand impacted the country's steel output, especially in the past few months.
SAIL imported the highest quantity
The largest importer of coking coal in January was SAIL with 1.08 mnt, same as in Dec'21. JSW Steel's imports of coking coal fell 14.5% m-o-m to 0.95 mnt. Tata Steel was the third-largest importer at 0.82 mnt, registering a rise of 35% m-o-m.
Sector wise, imports by traders fell 68.4% m-o-m to 0.12 mnt while those by steel and sponge iron mills were at 4.55 mnt, up by 6.24% m-o-m. Dhamra Port was the largest receiver of coking coal, at 0.62 mn t, a m-o-m a drop of 27% followed by Paradip Port at 0.58 mint, up by 30% against Dec'21.
India's coking coal imports in February are expected to remain range-bound amid poor weather conditions. The La-Nina-induced high rainfall in Australia is expected to subside only by February-end hampering exports from the country.