Imports of thermal and coking coal rose 12.5 percent and 45 percent respectively in August compared to the previous month at the largest coal handling port Paradip, as steel units and power producers took the benefit of lower prices, trade sources said.
According to data available from the port, thermal coal imports at Paradip rose to 494,918 tonne last month, against 439,718 tonne orders made in July. Similarly, August coking coal imports surged to 616,374 tonne, up from 494,918 tonne made during July.
Global thermal coal rates had plunged in August to lowest levels seen in last two years due to supply gut and poor demand from major consumers such as China and the US. In Indonesia, India’s major supplier, thermal coal was trading at $64.65 a tonne in August, lowest since September 2010.
Similarly, spot coking coal prices had dropped to $174.50 a tonne in August, down from $226 a tonne at the end of June.
Even though Odisha is a significant thermal coal producer, most thermal power producers import low-ash content Indonesian and Australian coal to blend it with locally-produced high-ash content coal for higher power generation. Likewise, nearly all sponge iron makers in Odisha and in adjacent states depend upon imported coke to produce the steel intermediate good.
