India's coal imports have declined: Here we decode why
What's the story
India's coal imports witnessed a significant drop of 16.4% to 21.08 million tons (MT) in July, compared to the same month last year when the figure was at 25.23MT. The decline is largely attributed to sluggish demand during the monsoon season and an abundance of high stock, according to Mjunction Services, a joint venture between Tata Steel and SAIL.
Import statistics
Import trends in the April-July period
The decline in coal imports wasn't just limited to July but was also seen in the April-July period of the current fiscal year. During this time, imports fell to 97.49MT from last year's 100.48MT. Mjunction MD and CEO Vinaya Varma said, "There was a decline in volumes due to sluggish demand during monsoon and the high stock available in the system."
Future expectations
Anticipated increase in coal demand
Despite the current decline, Varma expects an increase in coal demand ahead of the festive season starting at the end of September. This expectation is based on historical trends where industrial activity typically increases during this time due to various festivals and celebrations across India.
Import details
Non-coking v/s coking coal imports
In July, non-coking coal imports stood at 11.54MT, a decline from last year's 16.52MT. However, coking coal imports increased to 5.85MT from last year's 4.81MT during the same period. This data highlights the changing dynamics of India's coal import market and its dependence on different types of coal for various industrial processes and power generation needs.