Coking Coal Surges Amidst Overall Import Decline

October saw a varied trend in coal imports, with general coal imports on the decline due to abundant domestic supply, while coking coal imports rose. The increase in coking coal, crucial for steel production, is attributed to restocking by steel mills. Import levels are expected to remain low in future months due to higher domestic production.

In October, coal imports exhibited a mixed trend, characterized by a decline in general coal shipments while coking coal imports experienced an upswing. The drop in overall coal imports is attributed to an abundance of surplus coal in the domestic market.

Coking coal shipments surged by 12 percent, reaching 5.04 million tonnes compared to 4.50 million tonnes the previous year, primarily due to winter restocking activities by steel mills. As coking coal is a critical material for steel production, the surge reflects strategic planning by manufacturers ahead of anticipated logistical challenges in colder months.

Despite the overall decline in coal imports, the heightened demand for coking coal suggests a temporary trend driven by seasonal factors. Looking ahead, import levels are expected to remain subdued, bolstered by increased domestic production. Initiatives like the recently launched Coking Coal Mission aim to boost domestic supply and decrease reliance on imports.

(With inputs from agencies.)