New Delhi: India's imports of thermal and coking coal jumped 31 per cent in February from a year ago, as new power plants ramped up output, preliminary data from online trader mjunction showed, though purchases sank month-on-month on rising prices.
Shipments through the 31 coal-handling ports in India, which is about to unseat Japan as the world's second biggest coal importer after China, stood at 17.94 million tonnes in February compared with 13.72 million tonnes a year ago.
Imports in January this year, however, were much higher at 20.29 million tonnes, compared with initial estimates of 15.79 million tonnes, according to the data based on monitoring of vessels and information from shipping companies.
"Spot steam (thermal) coal prices remained volatile in the international markets during February while showing an increasing trend over the previous month," mjunction Chief Executive Officer Viresh Oberoi said in an email.
Prices of thermal coal for export from Australia's Newcastle port, Asia's benchmark, soared 30 per cent in January and February to over $80 a tonne at the end of last month as major miners cut production, although prices have since fallen below $70 a tonne.
India imported 13.61 million tonnes of thermal coal in February this year, 3.54 million tonnes of coking coal and 138,499 tonnes of metallurgical coke among other varieties.
Thermal coal is used for electricity generation in power plants while coking coal and metallurgical coke find use in steel making.
Consultancy Wood Mackenzie said on Wednesday India would be the largest driver of coking coal demand growth in 2015 as its steel industry expands, helping offset China's waning appetite.
"In 2015, the combined net increase in global seaborne demand will just about be sufficient to offset the negative China impact," Ronnie Cecil, principal steel analyst for Wood Mackenzie, said in a statement.
"India offers the main ray of hope with steel production growth on course to advance 4 percent this year boosting demand for imported met coal."
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