India's thermal coal imports rise over 15 pct in Q1 - trader

JSW Holdings

11/05/2018 11:27

By Sudarshan Varadhan
    NEW DELHI, May 11 (Reuters) - India's thermal coal imports
rose by more than 15 percent in the first three months of 2018,
with Indonesia accounting for about three-fifths of total
supplies, according to vessel arrival data from Dubai-based coal
trader American Fuels & Natural Resources.
    India's rising coal imports are contributing to higher
demand across Asia this year, which has pushed benchmark
Australian coal cargo prices above $100 per tonne, a price not
seen at this time of year in more than half a decade.
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    Imports rose to 39.6 million tonnes during the three months
ended March 31, the data from American Fuels, a supplier of coal
from the United States, showed. 
    That is up from 34.4 million tonnes of thermal coal during
the first three months of 2017, according to Indian government
data which matched the data from American Fuels.
    Government data for the first three months of 2018 has not
been released yet.
    The American Fuels figures are broadly in line with data
from an Indian-based trading company reviewed by Reuters that
showed imports were 37 million tonnes in the quarter. 
    India will likely increase 2018 thermal coal imports after
two straight years of declines because of domestic logistic
bottlenecks, regulatory changes and surging power demand.
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    Vasudev Pamnani, a senior trader at American Fuels, said
India's demand for coal with a higher calorific value, most of
which has to be imported, was increasing since buyers want more
energy from the coal they purchase to offset higher prices and
the logistical problems, mainly railway delays.
    South Africa was the second-largest source of foreign coal
during the first quarter, supplying about one-fourth of the
total imports, with the United States and Australia being the
next largest sources, the data showed.
    Adani Enterprises  ADEL.NS , India's largest coal trader,
accounted for about one-sixth of all the imports, purchasing
about 6.51 million tonnes during the period, the data showed.
    The Tata Group imported 5.23 million tonnes of coal during
the period with Swiss Singapore, part of the Aditya Birla Group,
taking in 2.92 million and JSW Group bringing in 2.48 million. 
    The companies did not respond to requests for comment.
    The ports of Mundra, Krishnapatnam and Kandla handled about
the two-fifths of all of the imports, according to American
Fuels. 

 (Reporting by Sudarshan Varadhan; Editing by Christian
Schmollinger)
 ((Sudarshan.Varadhan@thomsonreuters.com; +911149548059;
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