InvestorQ : Why have India’s coal imports in the first half of fiscal FY21 continued to be a drag?
vaishnavi mhatre made post

Why have India’s coal imports in the first half of fiscal FY21 continued to be a drag?

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vidhya Laxmi answered.
6 months ago
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While coal import volumes have picked up in October, the lag effect of the lockdown and the social distancing is still posing a problem for overall volumes of Indian ports. India’s coal imports dropped by 18.6% to 116.81 MT in H1 Apr-Oct period this year.

As stated earlier, the month of October 2020 saw total coal imports at 21.5 MT, sharply higher than the 18.3MT that India recorded in Oct-19. In October 2020, there has been a sharp spike in the imports of coking coal and non-coking coal imports from abroad.

The increased volumes in October can substantially be attributed to the festive season as well as the typical winter re-stocking. That is a normal phenomenon each year and may not be really representative of the overall situation. We need to await more data points.

It is estimated that stockists have also stocked coal on fears that the international supply shortfall could lead to a spike in coal prices, which is not evident yet. For the full year, the estimate is that coal imports would still be sharply lower than previous year. Apart from weak demand, the spurt in domestic output is also responsible for this trend.
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