India’s June coking coal imports fall with steel demand

Source : https://www.argusmedia.com/en/news/2129982-indias-june-coking-coal-imports-fall-with-steel-demand?backToResults=true

 

Indian coking coal imports fell to a 22-month low in June as steel demand remained sluggish during Covid-19 pandemic-related shutdowns and the onset of the monsoon season.

India imported 2.45mn t of coking coal in June, the lowest monthly total since September 2018, down by 41pc from a year earlier and lower by 13pc from May, according to data from e-commerce firm Mjunction. The bulk of falls were from Australia (see table).

January-June imports fell by 13pc from a year earlier to 20.84mn t.

India's crude steel output in June fell by 27pc from a year earlier, with most of the cuts borne by smaller scrap-based mills that account for half of India's output. Larger blast furnace-based mills that drive coking coal import demand have held more output on line by shifting sales to export markets. Tata Steel India increased its capacity utilisation to 80pc in June from around 50pc in April. An emerging recovery in domestic demand in August is tightening seaborne supplies of Indian coil.

The Argus premium low-volatile hard coking coal index rose by $4.25/t to $127/t cfr India over 1-30 June but dropped yesterday to $119.50/t cfr India.

India's pulverised coal injection (PCI) grade imports fell to a nine-month low in June, down by 31pc from a year earlier to 771,184t. January-June PCI imports fell by 18pc to 5.72mn t. June PCI arrivals from top supplier Australia fell by 3pc from May and by 39pc from the previous year to 489,008t. Russian PCI imports fell by 14pc from a year earlier to 248,110t.

June met coke imports at 114,510t were down by 47pc from a year previously and by 31pc from May.

India's top met coke suppliers in June were Poland at 62,400t and Russia at 42,966t. Other origins were Japan at 5,230t, Colombia at 2,685t and China at 1,020t. January-June met coke imports fell by 41pc to 1.02mn t.

By Dylan Wong

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