Coal imports to India in Oct at nearly 1.5 yrs high

Coal imports to India reached 13.8 million tonnes in October 2023, according to Oceanbolt, a Veson Nautical solution, the highest level since May 2022 and an increase of 43 percent year on year.

"Earnings for Bulkers have strengthened since the start of the traditionally stronger Q4," says Rebecca Galanopoulos Jones, Content Analyst, Veson Nautical. "Larger Bulkers have seen the most dramatic increase with Panamax earnings up by 18 percent from the start of October to $16,386/day."

Coal is dominating bulker demand to India, accounting for 90 percent of capesize trades this year, the update added.

In their latest quarterly forecast, VesselsValue, a Veson Nautical solution, highlights the potential for imports to increase further in coming years. "The Indian economy is growing at around 6.5 percent 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."

VesselsValue predicts that Indian coal imports are expected to increase by 12 percent per annum between 2023-2025.