Russia’s
exports of all types of coal to India over the period fell 22.4% from a year
earlier to 6.76 million metric tons, Bigmint’s data showed. U.S. exports rose
14.4% to 6.68 million tons in the same period.
The decline in Indian imports of
Russian coal was driven by a 67% plunge year-on-year in shipments of thermal
coal, used mainly for power generation. Purchases of steelmaking grades
such as coking coal, anthracite and pulverized coal injection (PCI) coal rose
during the period, the Bigmint data showed.
India is Russia’s second-largest coal
market after China and the decrease follows fresh western sanctions on Russia
because of the war in Ukraine. However, buyers downplayed their impact and said
Russia thermal coal was less attractive without lower discounts amid a drop in
global prices.
“Main issue is thermal coal prices
and not the sanctions. Logistics cost has gone up in Russia, that is why they
are not able to compete,” said K.C. Gandhi, Joint President of Materials
Management at India’s Shree Cement SHCM.NS.
Russia
has been boosting supplies to China amid the lower Indian exports, pushing coal
shipments to China to the highest in eight months in May.
U.S.
exports of thermal coal to India in the three months ended May 31rose 21.6%
from a year earlier to 4.57 million tons, with its share in Indian imports
increasing to 9.2% from 6.7%. However, its share in India’s coking coal imports
fell from 16% to 13.5%.
A 44%
year-on-year increase in Russia’s coking coal imports to India pushed its share
in India’s seaborne market for the steelmaking feed to 13.9% from 10.9%, while
its share in India’s thermal coal imports fell to 3.2% from 8.8%, the Bigmint
data showed.
Russia continued to dominate Indian
imports of other steelmaking grades such as anthracite and PCI, continuing to
account for nearly all its imports.
“Other
thermal coal exporting countries may benefit in the short term from Russia’s
pricing constraints,” said Riya Vyas, senior analyst at iEnergy Natural
Resources Limited, a Indian coal trading firm.