Lagos — Coal imports to India reached 13.8 metric tonnes, MT, in October 2023, the highest level since May 2022 and an increase of 43.5% year on year, according to Oceanbolt, a Veson Nautical solution.
Earnings for bulkers have strengthened since the start of the traditionally stronger fourth quarter, Q4, of the year, Oceanbolt also said. Larger bulkers have seen the most dramatic increased with Panamax earnings up by c. 18.54% from the start of October to 16,386 USD/day.
It stated that more than half of the Indian coal imports is coming from Indonesia, representing 56% of coal imports to India this year alone. Although the iron ore trade to China has traditionally been the cornerstone of the bulker market, particularly for Capes, it seems that coal imports to India are providing increasing support to the market, Oceanbolt added.
Coal is dominating bulker demand to India, accounting for 90% of Capesize trades this year, 76% of Panamax trades, 49% of Supramax trades and 1% for Handysizes.
In its latest quarterly forecast, VesselsValue, a Veson Nautical solution, highlighted the potential for imports to increase further in coming years. “The Indian economy is growing at around 6.5% per year and as a result this will increase their demand for energy both for power, with coal accounting for around three quarters of their energy consumption and also for growing industrial activity,” it said.
As India is highly reliant on coal, standing for three-quarters of its energy consumption, VesselsValue predicts that Indian coal imports are expected to increase by 12% per annum between 2023-2025.
