Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Canada, U.S. gain as India cuts dependence on Australian coking coal

Published 2019-06-25, 11:37 a/m
Updated 2019-06-25, 11:40 a/m
Canada, U.S. gain as India cuts dependence on Australian coking coal

* US, Canada coking coal accounts for sixth of Indian imports

* Australia's share falls to 71% vs 88% three years ago

* Indian steelmakers worry about Australia supply disruptions

By Sudarshan Varadhan

NEW DELHI, June 25 (Reuters) - Shipments of coking coal from the United States and Canada rose to a sixth of all Indian imports of the fuel during the year ended March 2019, as steelmakers in the coal guzzling country look to cut their dependence on Australia.

Australia's share in India's coking coal market fell to 71%, or 36.91 million tonnes, during the year ended March 2019 from about 88% three years ago, India coal ministry data reviewed by Reuters showed. The United States and Canada had a 5.6% share of the market three years ago.

Regular interruptions in India's main supplier over the last few years, including a flood in a major coal producing region in February and a cyclone which tore into Queensland in 2017, have caused worries about major supply disruptions in India.

Overall Indian coking coal imports rose 10.3% to 51.84 milion tonnes, while imports of thermal coal - mostly used by utilities - rose 13.72% during 2018-19.

Higher Indian coal imports are a boon for international miners such as Indonesia's Adaro Energy ADRO.JK , Australia's Whitehaven Coal WHC.AX , U.S. coal miner Peabody Energy Corp BTU.N and global commodity merchants such as Glencore GLEN.L .

India expects its coking coal demand to more than double in 10 years as the country plans to increase its crude steel production to 300 million tonnes by 2030 from current annual production of 132 million tonnes.

Indian steelmakers import the bulk of their coking coal needs due to scarce domestic production.

The country imported 4.29 million tonnes of coking coal from Canada during 2018/19, accounting for 8.27% of overall India-bound shipments of 51.84 million tonnes.

Coking coal imports from the United States were 4.13 million tonnes, or 8% of all shipments to India of the fuel.

Indonesia remained the top supplier of thermal coal in 2018-19, accounting for three-fifths, or 111.6 million tonnes. Imports from South Africa amounted to 31.15 million tonnes, or less than a sixth of all thermal coal imports.

Imports of thermal coal from the United States rose by 24% to 10.84 million tonnes, the largest gain by a country in percentage terms. Indonesian coal imports rose 18%, while imports from South Africa fell 19% during the year.

Rate of growth of thermal coal imports from countries such as Russia and Australia were largely in line with an overall surge in imports, while coal imports from Mozambique outpaced overall growth, up 37.4% to 4.85 million tonnes.

Australian thermal coal exports to India could rise once Adani Enterprises ' ADEL.NS Carmichael mine starts exporting, which the company expects to do in two years.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India's thermal coal imports png

https://tmsnrt.rs/2FuEY88 India's thermal coal imports interactive

https://tmsnrt.rs/2FyFW3g India's coking coal imports png

https://tmsnrt.rs/2FIN1i7 India's coking coal imports interactive

https://tmsnrt.rs/2Fv1UEm

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.