WASHINGTON: Data from coal consultancy Bigmint has revealed significant shifts in India’s coal imports, with a notable decline in Russian coking coal purchases and a concurrent increase in coal shipments from the United States. These changes, observed over the three-month period ending in May, were primarily driven by price differentials affecting market dynamics.
According to Bigmint, Russia’s exports of coal to India during this period fell by 22.4% compared to the previous year, totaling 6.76 million metric tons. In contrast, US coal exports to India saw a 14.4% increase, reaching 6.68 million tons.
The decrease in Indian imports of Russian coal was particularly pronounced in thermal coal, which is mainly used for power generation. Thermal coal shipments from Russia to India plummeted by 67%, impacting overall import figures. However, purchases of steelmaking coals such as anthracite, coking coal, and pulverized coal-injection (PCI) coal saw a rise during the same period, reflecting shifting demands within India’s industrial sectors.
India ranks as Russia’s second-largest coal market globally, following China. The decline in Russian coal exports to India coincided with the imposition of new Western sanctions against Russia amidst the ongoing conflict in Ukraine. Traders and industry analysts noted that these sanctions, while impactful, were overshadowed by broader market forces such as pricing trends and logistical challenges.
In response to reduced Indian imports, Russia redirected coal supplies towards China, a strategic move to mitigate losses in the Indian market amidst changing economic conditions.
Conversely, US thermal coal exports to India surged by 21.6% year-on-year for the period ending May 31, amounting to 4.57 million tonnes. The US expanded its market share in Indian thermal coal imports from 6.7% to 9.2%, while its share in coking coal imports slightly declined from 16% to 13.5%.
The data from Bigmint underscored a 44% increase in Russia’s coking coal exports to India over the past year, bolstering Russia’s position in India’s seaborne steelmaking feed market to 13.9%. However, Russia’s share in thermal coal imports into India dropped notably from 8.8% to 3.2%.
Meanwhile, the Russian imports of anthracite, PCI and other grades of steel in India continue to be the majority.
