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India Gazette
a day ago
- Business
- India Gazette
Indian coal imports from Russia reach two year high
The growth was primarily driven by flexible pricing and the availability of high-quality coal from Russian exporters India increased its imports of Russian thermal coal to a two-year high of 1.3 million tons in May, business daily Kommersant reported on Friday. The growth was primarily driven by flexible pricing and high-quality coal from Russian exporters, the report said, adding that Russia now accounts for 7.5% of India's coal imports. India, which imported 9.8 million tons of Indonesian coal in May, is now looking to increase its imports of higher-grade Russian coal. The South Asian nation's total thermal coal imports rose by 10% in May to 17.4 million tons, the highest level since June 2024, Kommersant reported, citing data from BigMint. Favorable market conditions have prompted India to reduce its imports of lower-calorific-value Indonesian coal in favour of higher-grade Russian coal, which is offered at competitive prices, Nariman Taiketayev, Director of the Corporate Ratings Group at National Credit Ratings told the daily. Russian suppliers are also generally more amenable to flexible pricing and India's future demand for coal will depend on a combination of price dynamics and weather-related factors, he added. Evgeny Grachev, director of the Russian Centre for Price Indices, believes that Russian coal exporters most likely increased volumes of exports to India within the bounds of existing contracts.
India Gazette
a day ago
- Business
- India Gazette
Indian coal imports from Russia reach two year high Media
The growth was primarily driven by flexible pricing and the availability of high-quality coal from Russian exporters India increased its imports of Russian thermal coal to a two-year high of 1.3 million tons in May, business daily Kommersant reported on Friday. The growth was primarily driven by flexible pricing and high-quality coal from Russian exporters, the report said, adding that Russia now accounts for 7.5% of India's coal imports. India, which imported 9.8 million tons of Indonesian coal in May, is now looking to increase its imports of higher-grade Russian coal. The South Asian nation's total thermal coal imports rose by 10% in May to 17.4 million tons, the highest level since June 2024, Kommersant reported, citing data from BigMint. Favorable market conditions have prompted India to reduce its imports of lower-calorific-value Indonesian coal in favour of higher-grade Russian coal, which is offered at competitive prices, Nariman Taiketayev, Director of the Corporate Ratings Group at National Credit Ratings told the daily. Russian suppliers are also generally more amenable to flexible pricing and India's future demand for coal will depend on a combination of price dynamics and weather-related factors, he added. Evgeny Grachev, director of the Russian Centre for Price Indices, believes that Russian coal exporters most likely increased volumes of exports to India within the bounds of existing contracts. He told Kommersant that the early onset of the rainy season will increase hydropower generation in India and "put pressure on thermal generation and coal consumption." India, which is dependent on coal for 70% of its electricity needs, announced a record coal production of 1.04 billion tons in March. Coal Minister G. Kishan Reddy has said that production should reach about 1.53 billion tons by 2030. (
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Business Standard
3 days ago
- Business
- Business Standard
Sluggish demand weighs on Indian steel sector, pulls down prices
An early onset of monsoon, coupled with sluggish demand and a correction in Chinese steel prices, is weighing on the Indian steel sector. Prices of hot rolled coil (HRC), a benchmark for flat steel, that were hovering around Rs 46,600 per tonne in January, started moving up in the run-up to the imposition of a provisional safeguard duty of 12 per cent on steel imports into India. Data from price reporting and market intelligence firm BigMint showed that the monthly average HRC price ex-Mumbai as on 29 April 2025 was Rs 52,900 a tonne. But as of 24 June, the trade-level (distributor to dealer) price was down by about 4 per cent. Distributors are currently facing a period of weakened demand, characterised by a noticeable decline in enquiries and a slower conversion rate of these enquiries into confirmed sales, BigMint explained. In long steel, trade-level blast furnace rebar prices declined by Rs 1,300 per tonne week-on-week to Rs 51,900 per tonne ex-Mumbai, as per BigMint's assessment on 20 June 2025. In the projects segment, prices declined further to Rs 51,000–51,500 per tonne for Mumbai, weighed down by continued bid-offer disparity and subdued construction activity due to the ongoing monsoon season, according to the firm. While weak market sentiment in the wake of the monsoon is influencing long steel prices, HRC, a global commodity, is being driven by international prices and geopolitical challenges, apart from slowing demand. Pressure points Steel producers cited multiple factors for the current weakness in prices. Monsoon aside, the underlying demand environment is seeing an impact from various factors, Ranjan Dhar, Director and Vice-President – Sales and Marketing at ArcelorMittal Nippon Steel India (AM/NS India), said. 'Exports by the industry are also limited, leading to extra material in the domestic market. Trade diversion in the wake of tariff action in the US is playing out – one or two Chinese cargoes have landed in India at lower prices and some bookings have happened from Russia where demand is tepid,' he added. Another major steel producer said demand from the infrastructure segment was weaker due to liquidity issues and the monsoon. Passenger vehicles were in the slow lane and consumer durables were affected by the early monsoon, said the producer. Slowing demand Apparent steel consumption fell to 10.93 million tonnes (mt) in April 2025, down from 12.96 mt in March and 11.29 mt in February, data sourced from BigMint showed. ICRA Vice-President Sumit Jhunjhunwala said steel demand growth was projected to moderate to around 7–8 per cent in FY26, as the Government of India's capital expenditure momentum in steel-intensive sectors such as railways and roadways was expected to soften from the peak investment levels seen during FY21–FY24. 'Demand growth had eased to 11.5 per cent in FY25, down from a robust 13.7 per cent in FY24,' he added. China factor The spectre of China is also looming large. AM/NS India's Dhar pointed out that China reduced its production from January to May by 1.7 per cent versus last year. 'Their domestic consumption is also down, but exports are up 8–10 per cent from last year. That is worrisome for India and needs more protection as the Indian steel industry is in an investment cycle. And investment cannot be stressed.' Chinese steel prices were also a dampener. Following the announcement of the safeguard duty (SGD), monthly steel imports began to decline sequentially from February 2025, Jhunjhunwala noted. 'However, with Asian steel prices trending lower, the risk of a rise in imports from the prevailing low levels remains a possibility. Chinese HRC prices have corrected by almost $20 per tonne since March 2025,' he added. Steel spreads Iron ore prices saw a downward revision at the beginning of June on account of growing inventory in the domestic market and declining exports, observed Satnam Singh, Senior Practice Leader and Director, Crisil Intelligence. On steel margins, he said they were expected to remain range-bound with a positive bias, as any expansion due to the imposition of safeguard duty would be set off by the correction in steel prices on account of the early monsoon. A Motilal Oswal report mentioned that premium hard coking coal prices (CNF Paradip, India) remained range-bound at $180–200 per tonne due to weak global demand. Average coking coal prices improved 5 per cent month-on-month to $206 per tonne in May, led by monsoon-led restocking. Dhar said demand was expected to improve after the monsoon when infrastructure and construction activities pick up. 'The RBI cutting interest rates by 50 basis points should further support urban demand.'
Reuters
4 days ago
- Business
- Reuters
India's coal stock at power plants hits record high ahead of monsoon, govt says
June 24 (Reuters) - India's coal stock at thermal power plants has reached a record high of 58.25 million tonnes, enough to meet 25 days of consumption, the government said on Tuesday, bolstering energy security ahead of the monsoon season. WHY IT'S IMPORTANT The record stockpile comes as India braces for monsoon rains, which often disrupt coal mining and transportation. CONTEXT India, the world's second-largest coal consumer, has ramped up domestic coal production to meet rising power demand and reduce reliance on imports. The milestone comes amid a broader push to expand coal-fired capacity by 80 GW by 2031–32, even as the country targets 500 GW of non-fossil fuel capacity by 2030. BY THE NUMBERS India's thermal coal imports fell 8% year-on-year in financial year 2024-25 to around 169 million tonnes due to record domestic production and reduced imported coal blending, according to commodities consultancy BigMint. Coal's share in India's power mix dropped to 70.7% in May, down from 74.0% a year earlier and the lowest level since June 2022, according to Grid India data.
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Business Standard
01-06-2025
- Business
- Business Standard
Indian steel companies eye robust growth in FY26 on improved spreads
Indian steelmakers are eyeing stronger growth this financial year (FY26), supported by the recent safeguard duty on imports and improved steel spreads. However, China remains a wildcard. Steel imports started dropping in the lead-up to the government's provisional safeguard duty – a measure aimed at protecting domestic producers from a flood of cheap imports. Data from price reporting and market intelligence firm BigMint showed that India's steel imports fell 21 per cent year-on-year (Y-o-Y) in January-April 2025 to 2.85 million tonnes (mt). Imports from China stood at 1.11 mt in the same period previous year, which reduced to 0.50 mt during January-April 2025. This reflected on steel prices. The monthly average for hot rolled coil (HRC) ex-Mumbai increased from ₹46,878 per tonne in December to ₹52,033 per tonne in April. It was at the same level in May 2025, while the average in May 2024 was at ₹54,100 per tonne. Post-safeguard steel prices have not increased to the extent that was anticipated. 'There are concerns around Chinese steel prices, which are trending down. Moreover, it continues to push volumes into the rest of the world,' said Ranjan Dhar, director and vice-president – sales and marketing at ArcelorMittal Nippon Steel India (AM/NS India) US President Donald Trump on Friday announced that he would be increasing tariffs on steel and aluminium to 50 per cent from 25 per cent. According to a report by Global Trade Research Initiative (GTRI), India exported $4.56 billion worth of iron, steel, and aluminium products to the US in FY25 with key categories, including $587.5 million in iron and steel, $3.1 billion in iron or steel articles, and $860 million in aluminium and related articles. 'These exports are now exposed to sharply higher US tariffs threatening the profitability of Indian producers and exporters,' the report mentioned. Dhar said that there would be no direct impact on Indian carbon steel, which already faces anti-dumping duty (ADD), countervailing duty (CVD), and Section 232. 'It's clear that in the era of trade barriers, if any country remains open or does not have adequate protection, its domestic industry will be impacted.' 'Chinese exports are still very high and a big concern for everyone. They should voluntarily regulate production close to their domestic consumption,' he added. 'The latest US announcement may result in a higher steel diversion risk into India. It will also stop small volume exports to the US,' said another major carbon steel producer. On April 21, 2025, following an investigation and recommendation by the Directorate General of Trade Remedies (DGTR), the Indian government imposed a 12 per cent provisional safeguard duty following a surge in low-cost imports. The safeguard duty was expected to impose a $60 per tonne additional levy for import of HRC. But falling Chinese steel prices and rupee strengthening have taken away half of its benefit,' said Ritabrata Ghosh, vice-president, Investment Information and Credit Rating Agency (Icra). According to a media report, the government is said to review the possibility of increasing the safeguard duty to 24 per cent. The industry demand was 25 per cent. Between February and May 2025, Chinese HRC prices have decreased from $470 a tonne to $455 per tonne. 'This can weigh on Indian steel prices going forward, even as the first quarter of 2025-26 (Q1FY26) is expected to be strong on the back of higher steel prices and lower coking coal prices,' Ghosh said. Steel prices started appreciating from January, but Q4FY25 is believed not to have captured it in full. 'The pricing environment has improved from Q4FY25 to Q1FY26. I see a potential improvement of about ₹3,250 per tonne on an average basis from the lows seen in the past few months,' said Managing Director and Chief Executive Officer Jayant Acharya, JSW Steel joint. 'We should continue to watch China. Their exports are still high, at about 10 mt a month. In Q4, we have seen a drop in Chinese imports into India, primarily in anticipation of safeguard duty and prices also hitting a low,' he added. According to Acharya, India is vulnerable given the strong domestic demand and changing global tariff dynamics. 'We will have to remain vigilant and proactive to implement necessary trade measures in time.' Sehul Bhatt, director- Research, Crisil Intelligence, said: Chinese finished steelmakers have pumped up exports in the recent past, to 111 mt in calendar 2024 from 94 mt in 2023 and 64 mt in 2022. 'The trend continued in Q1FY26 with export volume rising 6.4 per cent Y-o-Y.' One of the reasons behind limited export opportunities for domestic steelmakers is competitively priced Chinese products. However, given that 97 per cent of India's steel demand is met locally, the domestic steel sector is relatively insulated from tariff changes abroad, he added. Crisil Intelligence has forecasted domestic steel demand to grow 9-10 per cent Y-o-Y in FY26.
