India sharply reduced purchases of Russian coal

In January-September 2024, India purchased 6.1 million tons of thermal coal, which is 26% less than in the same period in 2023.

This was reported by The Moscow Times.

At the same time, due to the reduction in purchases from Russia, India increased its total coal imports by 12% year-on-year to 137.8 million tons.

Indonesia, South Africa and the United States became the country's main fuel suppliers. Russia ranks fourth among importers, ahead of Australia, Mozambique and Colombia. At the same time, Russia's share in thermal coal imports to India decreased to 3% in physical terms. In January-September 2023, it was about 7%.

After the embargo on coal supplies to the EU came into effect in August 2022, Russian coal miners began to actively look for new export destinations. Most of the supplies were redirected to China and India.

It is reported that in 2023, exports of thermal and coking coal decreased by almost 4% year-on-year to 212.5 million tons. In 2023, China purchased 100.9 million tons of coal from Russia (+50% compared to 2022), and India - 26 million tons (+31%). India accounted for 12% of all Russian coal exports.

This year, exports are declining due to falling profitability: the economics of supplying abroad have deteriorated significantly amid falling export prices and rising transportation costs.

There are also difficulties with the transportation of coal to the ports of the south and northwest, from where it is shipped to India. In addition, there are difficulties with banking transactions.

Author - Dmitriy Levchenko, 16/10/2024