Russian coal imports into India decline as US exports increase

According to statistics from Bigmint, Russia's total coal shipments to India during that time decreased by 22.4% from the previous year to 6.76 million metric tons. During the same time frame, U.S. exports increased 14.4% to 6.68 million tons.

Russian coal imports into India decline as US exports increase

According to statistics from coal consultant Bigmint, Indian imports of Russian coal fell while U.S. exports increased in the three months ending in May. This was ascribed by merchants to Russian supplies being less competitive.

According to statistics from Bigmint, Russia's total coal shipments to India during that time decreased by 22.4% from the previous year to 6.76 million metric tons. During the same time frame, U.S. exports increased 14.4% to 6.68 million tons.

The fall in shipments of thermal coal, which is mostly used for electricity production, by 67% year over year was the primary cause of the reduction in Indian coal imports from Russia. According to Bigmint statistics, purchases of steelmaking grades such anthracite, coking coal, and pulverized coal injection (PCI) coal increased during that time.

Russia's second-largest coal market is India, behind China, and the decline coincides with new Western sanctions imposed on Russia as a result of the conflict in Ukraine. Despite a decline in worldwide prices, purchasers minimized their influence, stating that thermal coal from Russia was less appealing without smaller discounts.

"Prices of thermal coal, not the sanctions, are the main problem. Russia's increased logistics costs make it impossible for them to compete, according to K.C. Gandhi, joint president of materials management at Shree Cement in India.

Due to Russia's increased supply in response to India's decreased exports, coal shipments to China reached a record high in May of eight months.

In the three months that concluded on May 31, U.S. thermal coal shipments to India increased by 21.6% over the same period last year to 4.57 million tons, accounting for 9.2% of Indian imports. Its percentage of India's imports of coking coal, however, decreased from 16% to 13.5%.

According to Bigmint statistics, Russia's share of India's seaborne market for steelmaking feed increased by 44% year over year to 13.9% coking coal imports, but its portion of India's thermal coal imports decreased to 3.2% from 8.8%.

Russia remained the primary supplier of virtually all of India's imports of other steelmaking grades, including PCI and anthracite.

"Russia's pricing constraints could benefit other thermal coal exporting countries in the immediate term," said Riya Vyas, senior analyst at the Indian coal trading company iEnergy Natural Resources Limited.