Connect with us

Economy & Market

Coal import witnesses growth

Published

on

Shares

Coal imports grew by 8.1 per cent in FY18 on the back of sustained demand from steel sector for coking coal and steady demand from the power and cement industry.
Coal production in India touched 688.4 MT in FY18, clocking a 2.5 per cent increase over last year’s production. The two large state-run coal miners, Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) together accounted for 91.6 per cent of the total coal produced in the country during FY18.
Coal imports grew by 8.1 per cent in FY18 on the back of sustained demand from steel sector for coking coal and steady demand from the power and cement industry. Total coal import in FY18 stood at 213 MT, against 195 MT in FY17. Australia, Indonesia and South Africa are the three largest exporters of coal to India and contribute to 75-80 per cent of the country’s total coal import.
Coal imports were widely anticipated to fall during FY18. The government has been pushing steam coal consumers especially power producers to replace imported coal with domestic coal. But inadequate coal transportation infrastructure especially availability of rakes has been hampering supply to power producers. Coal import trend is expected to continue as power, cement and steel industry are expected to witness improvement in demand and capacity utilisation.Global trend
China continues to be the largest coal producer globally and accounts for 45 per cent of the world coal production. The USA, India, Australia and Indonesia together account for 33 per cent of the world coal production. Global coal production stood at 7,270 MT. Globally, coal production has been declining and 2016 marked the largest single-year global production volume decline as per data available from International Energy Agency (IEA).
Developed economies namely USA, China and Europe continued to report fall in demand for coal and have reported growth in gas-based and renewable energy generation. India remains among the top-three coal producers in the world and as per data for 2016 by IEA, overtook USA. USA as mentioned above reported fall in production, whereas India has been reporting growth in production to fuel its large thermal power capacity which contributes to 72 per cent of the country’s electricity generation.
Australia accounts for 18-20 per cent of the world coking coal production. India, China and Japan are the largest importers of coking coal from Australia. China is the largest coking coal consumer and accounts for 60-62 per cent of the world consumption. India which is the second largest coking coal consumer accounts for 10-11 per cent of the world consumption.
Australia and Indonesia continued to be the largest coal exporting nations in the world and accounted for 57 per cent of the total coal export volume. The top-4 destinations of exported coal were China, India, Japan and South Korea and accounted for 58.5 per cent of the total global coal import volume.India: Performance of demand driving sectors for coal
The year witnessed sustained demand for steam coal from power sector. Other sectors like cement and steel which use thermal coal as feedstock and coking coal as raw material reported steady growth in production. Thermal power plants in the country reported capacity utilisation above 60 per cent after having touched 59 per cent levels in 2016-17.
The power sector reported shortage in supply of coal from state-run coal miner’s, which has been affecting the operational performance of thermal power plants. The shortage can be roughly equated to the shortfall in CILs coal production target, i.e., 33 MT. Inadequate rail-connectivity and rake availability have been some of the major hurdles which led to shortage of coal during the year at thermal power plants. State-run miner CIL has is expected to invest significantly into developing railway infrastructure over the next 12-18 months which is expected to improve the connectivity of pitheads.
In the absence of unavailability of cheap domestic coal, thermal power plants, in and around coastal regions and ports opt for imported coal.
Steel production has been growing steadily and reported 5.6 per cent growth in FY18. Cement production grew by 6.3 per cent in FY18. During the last 12-months, average global coal prices have been in the range of $ 70-106 with prices hitting the peak in January 2018 after having bottomed out at $72.5 per tonne in May 2017.
Global steam coal prices have been on a steady rise after having touched a low of $ 50 per tonne in May 2016, on the back low demand from China. Coal India, countries largest coal producer hiked coal prices by 10 per cent in January 2018. The average coal price depending upon the Gross Calorific Value (GCV) of coal ranged between Rs 530-3,290 per tonne.
Domestic coal shortage has been widely reported especially for thermal power plants. The state-run miners (CIL and SCCL) on their part have been trying to address the issue of coal shortage at power plants. During the year, 580.3 MT of coal has been made available to the consumers, 7 per cent increase over previous year. CIL has introduced new pricing methodology based on energy content of coal starting April 1, 2018. The same would not have a significant impact on the prices of domestic coal. The price of each tonne of coal will be based on its total energy content.Coal import
Coal accounted for 4.9 per cent of total imported goods by value (approximately $22 billion) and is the fourth most imported commodity behind petroleum, precious stones and gold.Steam/thermal coal import
India imported around 155-158 MT of steam or steam coal used as fuel for thermal power plants. Roughly 80-85 GW of thermal power capacity in India is partially or fully dependent on imported coal to fuel these power plants. Additional 6-7 MT of other types of bituminous and coke was imported for other industries. Indonesia (81.5 MT), South Africa (33.5 MT), USA (6 MT), Mozambique (3.1 MT) and Australia (1.7MT) are the largest exporters of Steam coal to India between April-Feb 2018.Coking/metallurgical coal
Coking coal, also known as metallurgical coal, is used to create coke, one of the key inputs for the production of steel. China, India, South Korea, Japan and European Nations are major global demand centres of coking coal for manufacturing steel.
India imported roughly 46.5 MT (estimates) of coking coal in FY18, 8.1 per cent growth over import volumes in FY17. India also has coking coal reserves but the quality of domestic coking coal is inferior to imported coking coal. Imported coking coal fulfils 65-70 per cent of the total coking coal demand from steel industry.
Around 3/4th of India’s coking coal imports come from Australia, and the remaining from Canada, USA, Russia, Indonesia etc.Performance of CIL and SCCL
Coal India and Singareni Collieries Company are the two largest coal miners in the country. The two companies together produced 629.4 MT of coal which includes both steam and coking coal. India’s largest coal producer CIL has been unable to meet its annual target set by Government. CIL meeting its coal mining target would easily help cut coal imports by up to 10-15 per cent depending upon the quality of coal produced.CARE Ratings view
Total coal production may stagnate during the year given no visible improvement in availability of rakes or increase in evacuation infrastructure for mined coal. We expect the total domestic coal production to grow in the range of 2.5-3.5 per cent (705-712) MT for FY19. There is an immediate requirement to auction private coal blocks of coking and steam coal for 50 MT per annum, in order to control import of steam and coking coal. Total import of coal including coking coal and steam coal could touch 235-245 MT if the government approves an order to ban use of pet coke which is a feedstock in cement industry. Additional 35-40 MT of imported steam coal would be required to compensate for the pet
coke ban.Source: CARE Ratings

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

Published

on

By

Shares

FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

Continue Reading

Concrete

Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

Published

on

By

Shares

Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

Continue Reading

Concrete

JK Cement Crosses 31 MTPA Capacity with Commissioning of Buxar Plant in Bihar

Published

on

By

Shares

JK Cement has commissioned a 3 MTPA Grey Cement plant in Buxar, Bihar, taking its total capacity to 31.26 MTPA and placing it among India’s top five grey cement producers. The ₹500 crore investment strengthens the company’s national footprint while supporting Bihar’s infrastructure growth and local economic development.

JK Cement Ltd., one of India’s leading cement manufacturers, has announced the commissioning of its new state-of-the-art Grey Cement plant in Buxar, Bihar, marking a significant milestone in the company’s growth trajectory. With the commissioning of this facility, JK Cement’s total production capacity has increased to 31.26 million tonnes per annum (MTPA), enabling the company to cross the 30 MTPA threshold.

This expansion positions JK Cement among the top five Grey Cement manufacturers in India, strengthening its national footprint and reinforcing its long-term growth strategy.

Commenting on the strategic achievement, Dr Raghavpat Singhania, Managing Director, JK Cement, said, “Crossing 31 MTPA is a significant turning point in JK Cement’s expansion and demonstrates the scale, resilience, and aspirations of our company. In addition to making a significant contribution to Bihar’s development vision, the commissioning of our Buxar plant represents a strategic step towards expanding our national footprint. We are committed to developing top-notch manufacturing capabilities that boost India’s infrastructure development and generate long-term benefits for local communities.”

The Buxar plant has a capacity of 3 MTPA and is spread across 100 acres. Strategically located on the Patna–Buxar highway, the facility enables faster and more efficient distribution across Bihar and adjoining regions. While JK Cement entered the Bihar market last year through supplies from its Prayagraj plant, the Buxar facility will now allow the company to serve the state locally, with deliveries possible within 24 hours across Bihar.

Sharing his views on the expansion, Madhavkrishna Singhania, Joint Managing Director & CEO, JK Cement, said, “JK Cement is now among India’s top five producers of grey cement after the Buxar plant commissioning. Our capacity to serve Bihar locally, more effectively, and on a larger scale is strengthened by this facility. Although we had already entered the Bihar market last year using Prayagraj supplies, local manufacturing now enables us to be nearer to our clients and significantly raise service standards throughout the state. Buxar places us at the center of this chance to promote sustainable growth for both the company and the region in Bihar, a high-growth market with strong infrastructure momentum.”

The new facility represents a strategic step in supporting Bihar’s development vision by ensuring faster access to superior quality cement for infrastructure, housing, and commercial projects. JK Cement has invested approximately ₹500 crore in the project. Construction began in March 2025, and commercial production commenced on January 29, 2026.

In addition to strengthening JK Cement’s regional presence, the Buxar plant is expected to generate significant direct and indirect employment opportunities and attract ancillary industries, thereby contributing to the local economy and the broader industrial ecosystem.

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds