India's coking coal imports rise on year in May

India's coking coal imports increased by 13pc on the year to 8.26mn t in May, according to data from shipbroker Interocean, supported by higher shipments from Australia, Mozambique and Canada.

Imports from Australia, India's largest supplier, rose by around 60pc on the year to 4.37mn t.

The higher import volumes partly reflected the receipt of delayed cargoes resulting from supply disruptions from Peabody's Centurion mine in Australia. The delays tightened seaborne supply availability and supported premium hard low-volatile coking coal prices during May.

Indian steelmakers also increased purchases ahead of the monsoon season. Market participants said buyers largely prioritised securing through long-term contracts rather than sourcing volumes from the spot market.

The Argus premium low-volatile hard coking coal index averaged $265.12/t cfr India in May, up by 30pc from a year earlier.

But India's metallurgical coke imports fell by 17pc on the year to 247,402t in May.

India's Directorate General of Trade Remedies (DGTR) on 29 April proposed reducing anti-dumping duties on low-ash metallurgical coke imports from China, Colombia, Indonesia, Australia, Russia and Japan for five years.

Lower duties could improve the competitiveness of Indonesian coke in India and provide some support to producers.

India's pulverised coal injection (PCI) imports declined by 12pc on the year to 470,437t in May.

Australian shipments increased sharply, offsetting lower imports from Russia. Market participants said buyers adopted a more selective procurement strategy and reduced dependence on smaller suppliers.

Meanwhile, India's crude steel output rose by 1.9pc on the year to 14.1mn t in May, according to World Steel Association data.

By Romil Sethi