India's Coal Import's (April-June) 2023

According to official data from the India Ports Association, there was a noticeable decrease in coal imports during the month of June at India’s state-run ports. The figures show a double-digit decline both month over month and year over year, signaling a significant change in the coal import environment. This article will examine the most recent patterns in coal imports, highlighting the causes of the decline and any potential effects on the nation’s energy industry.

Coal Imports

• Decrease in Coal Import: Coal imports totaled 15.57 million tonnes in June through India’s 12 state-run ports, a decrease of 10.21 percent from the same month last year. Coal imports through these ports fell by 10.93 percent on a monthly basis. Following a record high in May, the highest since April 2015.

• Segment analysis: Thermal coal imports, which are primarily used to generate electricity, totaled 10.7 million tonnes in June. This represents a 7.25 percent year-over-year decline and a 10.3 percent month-over-month decline in thermal coal imports. Imports of coking coal, which is used to make steel, were 4.87 million tonnes, down 12.27 and 16.09 percent from one month to the next.

• Port-specific Analysis: The most thermal coal was imported in June, totaling 4.29 million tonnes, at the state-run port of Paradip in East India. This port continued to be a significant entry point for thermal coal despite a slight decline of 3.05 percent from the previous year. The largest coking coal imports were made by Kolkata, which is located along the east coast. These imports totaled 1.67 million tonnes, a significant decrease of 26.4 percent from one month to the next and a 9.1 percent year over year decline.

• Import trends for the budget year 2023–2024: Coal imports totaled 49.54 million tonnes during the first three months of the fiscal year 2023–24 (April–June), an increase of 8.01 percent overall from the prior year. 34.56 million tonnes of thermal coal were imported, representing a 7.82 percent year-over-year growth, while 14.99 million tonnes of coking coal were imported, representing an 8.44 percent growth.

• Coal Handling Volume: Despite the drop in coal imports, the total volume of coal handled at the 12 ports during the aforementioned period was 200 million tonnes, an increase of merely 1 point 74 percent over the 197 million tonnes recorded the year prior.

OFB’s Insight

The recent decline in coal imports through India’s state-run ports denotes a significant shift in the coal market. Despite a decline in imports in June, the fiscal year’s overall trend is still positive. This drop in imports may be due to a variety of factors, such as shifts in domestic demand, changes in global coal prices, or a move toward alternative energy sources. Additional research and monitoring of the coal import environment will yield important insights into India’s developing energy sector and its future course.