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India thermal coal imports fall at fastest rate in 15 months

India's imports of thermal coal plunged by about a third on an annual basis in October, according to information analytics companies Bigmint and Kpler, due to slowing power generation and higher clean energy output.

Deliveries into the world's second-largest coal importer plunged 31.8% to 13.56 million metric tons, Bigmint information showed. This was the fastest rate of contraction in fifteen months, and the first successive decrease because July 2023.

Traders expect Indian purchases to pick up in the coming weeks, however that will not be enough to raise total annual imports above 2023 levels as deliveries are anticipated to fall in the last two months of 2024 due to high inventories at ports.

Despite low commercial activity, traders have bought a high quantity of coal into India, stated Vasudev Pamnani, director at Indian coal trading company I-energy Natural Resources Ltd, adding that thermal coal imports for the year 2024 are anticipated to be flat at about 176 million tonnes.

Indian shipments of the fuel used mainly for power generation have actually been tracking the trajectory of development in shipments by top importer China over the in 2015, fortifying global rates.

The decline in Indian imports in October was the first major divergence between imports by India and China since mid-2023.

China's imports of thermal and metallurgical coal rose 29%. in October - generally due to higher thermal coal imports - putting. shipments of the fuel on track to reach another record high in. 2024.

While price-sensitive Indian purchasers have actually shown a preference. for more affordable domestic coal in current months, experts state. imported coal has a cost advantage over the domestic variety in. China.

Lower hydropower generation in China has actually likewise resulted in a. greater reliance on coal in September, while higher hydro and. solar power generation have actually lowered reliance on coal in India,. information on Indian and Chinese government websites showed.

(source: Reuters)