India’s thermal coal imports rise

NEW DELHI: India´s thermal coal imports rose by more than 14 percent in the second quarter of 2018 from a year earlier, putting the energy-hungry nation on track for a rise in annual imports after two straight years of decline.

Indian imports rose to 43.4 million tonnes during the three months ended June 30, up from 37.9 million a year ago, according to data from American Fuels & Natural Resources, a Dubai-based trader of coal from the United States which tracks shipments around the region.

That is India´s highest quarterly import tally in two years, which along with higher consumption in China has been a major driver behind the strong recovery seen in benchmark Australian coal prices this year.

The strong purchases take India´s first-half imports to 81.9 million tonnes, up 13 percent from the 72.3 million tonnes imported over the same period in 2017.

Domestic logistical bottlenecks due to a shortage of trains, regulatory changes targeting pollution cuts and surging power demand have all fuelled the higher imports, which are expected to stay firm through the rest of the year.