India has significantly reduced its coal imports, with a notable 21% quarter-over-quarter and 17% year-over-year decrease, as global coal prices continue to surge, the coal research quarterly Q4-2023 edition by LSEG Workspace showed.
This decrease in coal imports, particularly evident in the thermal coal sector, comes in response to the steep increase in seaborne prices for low and mid-CV thermal coal. India, known for its price-sensitive import strategy, has been adjusting its coal procurement in line with these global market shifts.
The report further highlights mixed trends in coking coal imports, essential for steel production. While there was an 11% decrease in coking coal imports over the three months to end-September, a year-over-year increase of 3% was observed, indicating the complex dynamics at play due to fluctuating global prices.
In terms of coal import origins, there was a significant reduction in coal imports from Australia, India’s largest supplier, by 17% sequentially, although the year-over-year figures remained unchanged. Russian coal imports saw a decrease of 16% from the previous quarter, yet they witnessed a remarkable 56% increase compared to the previous year. Additionally, imports from the United States increased by 8% in the third quarter, though they experienced a 7% decrease year-over-year.
Amidst these changes, India’s crude steel production showcased a significant uptick. The country recorded a 15.1% year-over-year growth in crude steel production in October, marking a 12.1% increase year-to-date, following a 5.5% rise in 2022.
The World Steel Association anticipates a 1.9% global increase in crude steel production next year, with India expected to be a major contributor to this growth. Conversely, steel demand and production in China are expected to remain stable.