Coal news and updates

Sharp fall in India’s Nov coal imports from South Africa

December 6: India’s coal imports from South Africa’s Richards Bay Coal Terminal (RBCT) fell 27.70% in November to 1,644,342 tons against 2,274,323 tons recorded in October, according to data made available to ICMW by one of the promoters of the terminal.

The fall in imports was attributed to a cautious approach by Indian companies which reduced their purchases significantly from the second half of October after spot prices started firming up.

The spot price of 6,000 Kcal/kg NAR material which was moving around $76 per ton till October 16, started rising thereafter to touch a high of $86.50 per ton on October 28. Similarly, price of the 5,500 Kcal/kg NAR material jumped to $65.00 per ton from $60.50 per ton during the same period.

“The sudden surge prompted price-sensitive Indian buyers to hold their purchases which resulted in lower imports in November,” said an official from a cement company.

Earlier, in August-September, imports had fallen significantly due to the depreciation in the Indian currency against the dollar. Most of the Indian companies had avoided entering into deals in July-August because the depreciated currency led to a sharp fall in loading in August-September.

Meanwhile, imports in November this year were also down 24.51% compared to 2,178,292 tons recorded in the corresponding month in 2012, according to data available with ICMW.

With this, India’s coal imports from South Africa’s RBCT during the first 11 months (January-November) of 2013 stood at 19,783,772 tons, up 3.86% from 19,048,083 tons imported during the corresponding period in 2012.

With the fall in November imports, total coal imports by India from South Africa, which were earlier expected to be significantly higher than 21.45 million tons (mt) reported in 2012, are thus likely to remain flat.

Incidentally, the record imports in 2012 were largely on account of a surge in imports in the fourth quarter (October-December) of that year when prices were ruling soft. India’s coal imports from South Africa stood at a record 21.45 mt in 2012 compared to 16.13 mt imported in 2011 and 20.99 mt in 2010.

In November, a total of 18 vessels sailed for various ports of India from RBCT of which five were destined for Krishnapatnam, two each for Dhamra and Dahej and one each for Jaigarh, Kandla, Mormugao, New Mangalore and Pipavav. The destination of four vessels could not be ascertained.

In October, 15 vessels came to India from RBCT out of which two came to Dhamra and one each to Dahej, Jaigarh, Krishnapatnam, Mundra, New Mangalore and Paradip, among others.

Following are the details of India’s monthly coal imports from RBCT in 2013 and 2012: