April 26, 2013 India imported around 125-130 mil- lion tons of coal in FY 2013 Increasing demand for coal in the country forced Indian buyers to import more coal in 2012-2013 as domestic supply did not match total demand. During the FY 2013, nearly 127.25 MnT of coal has been imported (i.e. April 2012 – March 2013), as per Indian custom data against 105 million tons in 2011-2012 Coal demand for the year 2013-14 is estimated at 769.7 MnT and the total Indian coal production is estimated to be 604.6 MnT (including captive). Thus, the esti- mated gap of 165.14 MnT of coal will need to be met through imports which is about 30% more compared to current import. Non-Coking Coal Market remains Stable Prices for Indonesian material remain at same level due to booked shipments till May. "Movement in prices (up and down) will be seen after May as Indonesia is fulfill- ing the supply orders till May end at same price level", said an importer based in Mumbai. Current price offers for RB1 (South Africa) is at $80/MT (FoB Richards Bay ), whereas Indonesian 3800 GAR is at $37 and 4200 GAR is at $43/MT respectively. Supramax freight charge from Indonesia (South Kalimantan) re- mains stable at $12/MT for ECI and $14.5/Mt for WCI. Spot HCC prices remain downwardSpot metallurgical coal prices in Asian market continues to decline due to cautious Indian and Chinese buyers amid good supply from Australia. Low buying interest in the market is seen with small vol- umes being purchased by the end users of the material, said sources. "Demand is not impressive, but it’s moving slowly", said a source based in Singapore. Current price for Premium Low Volume is at $148/MT (FoB Australia) converting to $166/MT CFR India. Whereas, HCC 64 mid volume is at $132/MT FoB. Freight charge from Australia to India is at around $18/MT on panamax basis. Global Non-Coking Coal Prices Origin Destination Grade FOB Avg. CNF Port Port (in kcal) GCV ($/MT) Freight ($/MT) Indonesia ECI 3800 GAR 37 12.00 49.00 Indonesia WCI 4000 GAR 40 14.50 54.50 Indonesia WCI 4200 GAR 43 14.50 57.50 South Africa ECI 6000 NAR 80 18.00 98.00 WCI - West Coast India ECI - East Coast India 0.00 0.00 0.39 0.55 0.00 0.60 0.00 0.08 0.30 0.22 2.37 1.13 0.49 0.26 0.65 0.03 0.58 0.46 0.21 3.49 0. 00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Mundra KRISHNAPATNAM PARADIP VIZAG DAHEJ GOA Kandla JAIGARH HALDIA OTHERS ST EAM COK IN G Qty in million to ns I N D I A N P O R T S Portwise Coal Imports- March'13 Global Coking Coal Index Prices Particular (FOB Aus tr alia) in $/MT 24-Apr 2 Week 4 week Pl atts Premi um Low Vo l 14 8. 00 15 3. 00 15 8. 50 Platts HCC 64 Mid Vol 132.00 139.00 143.00
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India imported around 125-130 mil-lion tons of coal in FY 2013
Increasing demand for coal in the country forced Indian
buyers to import more coal in 2012-2013 as domestic
supply did not match total demand.
During the FY 2013, nearly 127.25 MnT of coal has been
imported (i.e. April 2012 – March 2013), as per Indian
custom data against 105 million tons in 2011-2012
Coal demand for the year 2013-14 is estimated at 769.7
MnT and the total Indian coal production is estimated
to be 604.6 MnT (including captive). Thus, the esti-
mated gap of 165.14 MnT of coal will need to be met
through imports which is about 30% more compared to
current import.
Non-Coking Coal Market remains Stable
Prices for Indonesian material remain at same level due
to booked shipments till May. "Movement in prices (up
and down) will be seen after May as Indonesia is fulfill-
ing the supply orders till May end at same price level",
said an importer based in Mumbai.
Current price offers for RB1 (South Africa) is at $80/MT
(FoB Richards Bay ), whereas Indonesian 3800 GAR is at
$37 and 4200 GAR is at $43/MT respectively. Supramax
freight charge from Indonesia (South Kalimantan) re-
mains stable at $12/MT for ECI and $14.5/Mt for WCI.
Spot HCC prices remain downward Spot metallurgical coal prices in Asian market continues to
decline due to cautious Indian and Chinese buyers amid
good supply from Australia.
Low buying interest in the market is seen with small vol-
umes being purchased by the end users of the material, saidsources. "Demand is not impressive, but it’s moving slowly", said a source based in Singapore.
Current price for Premium Low Volume is at $148/MT (FoB Australia) converting to $166/MT CFR India. Whereas, HCC 64 mid
volume is at $132/MT FoB. Freight charge from Australia to India is at around $18/MT on panamax basis.
Global Non-Coking Coal Prices
Origin Destination Grade FOB Avg. CNF
Port Port (in kcal) GCV ($/MT) Freight ($/MT)
Indonesia ECI 3800 GAR 37 12.00 49.00
Indonesia WCI 4000 GAR 40 14.50 54.50Indonesia WCI 4200 GAR 43 14.50 57.50
South Africa ECI 6000 NAR 80 18.00 98.00WCI - West Coast India
Richards Bay (S.Africa) Kandla 53,000 MT 20.50 21.60 -1.1
Richards Bay (S.Africa) Chennai 50,000 MT 20.00 21.10 -1.1
Richards Bay (S.Africa) Paradip 53,000 MT 20.00 21.20 -1.2
PANAMAX
North Pulau Laut(Indonesia) Mundra 71,500 MT 9.80 9.60 0.2
North Pulau Laut(Indonesia) Goa 71,500 MT 10.00 9.90 0.1
North Pulau Laut(Indonesia) Dahej 68,000 MT 10.70 10.70 0.0Richards Bay (S.Africa) Paradip 68,000 MT 19.20 19.20 0.0
Richards Bay (S.Africa) Mundra 71,500 MT 16.50 16.50 0.0
Richards Bay (S.Africa) Goa 71,500 MT 16.60 16.70 -0.1
Richards Bay (S.Africa) Dahej 68,000 MT 18.10 18.20 -0.1
0.0
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90.0
100.0
Q T Y ( i n m i l l i o n t o n s )
India's Coal Import
Coking Coal
Thermal Coal
Widening demand-supply gap is continuously encouraging im-ports in the country. At present, India ranks fourth in coal im-
ports and the major sources are Indonesia, Australia and South
Africa. Canada, Mozambique and USA. India’s coal production has increased from ~554 million tons (MnT) in 2011-12 to ~557 MnT in 2012-13 (an increase of 0.5%). On
the other hand, demand for coal has grown at CAGR (Compound Annual Growth Rate) of more than 7% in the last decade and has
reached around 696 MnT (2011-12) as against the production growth of ~5%. It is further anticipated that coal production will grow
at a CAGR of around 7-9% during 2013-14. According to the report of the Working Group of Coal and Lignite for the 12th Five Year
Plan, coal demand in India is projected to grow at a CAGR of 7.1% till 2016-17 and reach 980.5 MnT.
Year Supply Demand GAP
2006-07 430.8 463.9 33.1
2007-08 457 504.3 47.3
2008-09 490 546.1 56.1
2009-10 514.5 582.3 67.8
2010-11 536.1 624.8 88.7
2011-12 554 696 142
2012-13 (E) 580 772.8 192.8
2012-17 (XII Plan) 759.6 1,000-1,050 250-300
(Source: Working Group Report MOC, Govt. of India)
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