India's Thermal Coal Imports from the US Reach Over Two-Year High in November

In November, India experienced a notable surge in long-haul thermal coal imports, with shipments from the United States peaking at 1.40 million tonnes (MT), marking the highest level in over a year. The information comes from energy intelligence firm Kpler, which reported that India’s total thermal coal imports for the month amounted to 17.51 MT, slightly lower than the 15-month high of 18.66 MT recorded in October 2023. Despite a month-on-month decrease, the data reveals a year-on-year increase of 6.92 MT.

Overview of November Imports

India imported a total of 17.51 MT of thermal coal in November, slightly lower than the 15-month high recorded in October 2023.
Kpler’s Lead Major Dry Bulks Analyst, Alexis Ellender, revealed that seaborne coal imports amounted to 23.27 MT, a decrease from October but still a YoY increase of 6.92 MT.

Year-to-Date Statistics

Cumulatively, from January to November 2023, India’s coal shipments totaled 222.43 MT, reflecting an 11.39 MT increase compared to the same period the previous year.
Despite a decline from October’s peak, November’s thermal coal imports reached 17.51 MT, setting a new high for the month.

Rise in Long-Haul Cargoes from the US

A notable highlight was the substantial increase in long-haul coal shipments from the US, reaching the highest level in over two years at 1.40 MT. This surge was attributed to the US aiming to export surplus domestic coal.
Over the years, the US has been a significant coal supplier to India, with fluctuations in import volumes. In FY22, India imported 14.37 MT from the US, showing a decline in FY23 to 13.69 MT.

Shifts in Overseas Suppliers

In 2022, Indonesia emerged as India’s largest overseas supplier of thermal coal, surpassing Australia and South Africa. Meanwhile, Russia surpassed the US to become the fourth-largest supplier.
Despite this, the US maintained its position as India’s second-largest supplier of coking coal after Australia, as of October 2023. Russia secured the third position in coking coal supplies.

Stability in Other Imports

Monthly imports from other suppliers remained relatively stable or experienced a modest month-on-month decline.
Indonesia remained the dominant thermal coal supplier in November, contributing 10.46 MT. This decrease in imports coincided with a seasonal rise in domestic coal production and dispatches.

Stockpile Dynamics and Outlook

The combination of annual import growth, increased domestic supply, and reduced power demand due to falling temperatures supported restocking efforts at Indian power stations.
By the end of November, coal stockpiles at major power plants monitored by the Central Electricity Authority (CEA) rose to 27.09 MT, marking the highest level since mid-September.
Despite the increase, stockpiles were still below the November 2022 level, prompting expectations of further seaborne imports. With domestic supply projected to rise in December, a month-on-month decrease in seaborne thermal coal imports is anticipated, although still exceeding levels from the previous year.

Questions Related to Exams

Q: Why did India experience a surge in thermal coal imports from the US in November?

A: Long-haul coal cargoes from the US reached a two-year high at 1.40 MT, driven by India’s effort to import surplus domestic supply.

Q: How does the historical data reflect India’s thermal coal imports from the US?

A: Historical trends show fluctuations from 12.03 MT in FY18 to a peak of 14.37 MT in FY22, followed by a slight decline to 13.69 MT in FY23.

Q: What shifts occurred in India’s overseas thermal coal suppliers in 2022?

A: Indonesia emerged as the largest supplier, surpassing Australia and South Africa, while Russia overtook the US to become the fourth-largest supplier.

Q: What is the status of the US as a coking coal supplier to India as of October 2023?

A: The US is India’s second-largest coking coal supplier after Australia, with Russia holding the third spot. Shipments from the US increased by 9% year-on-year.