India's coal imports from Russia in March could be the highest in more than two years, data from research consultancies showed, as Indian buyers continue buying the fuel from a market that is now increasingly isolated by sanctions, reports Reuters.
Vessels carrying at least 1.06 million tonnes of coking coal, mainly used for steelmaking, and thermal coal, used primarily for electricity generation, are set to deliver the fuel at Indian ports in March, the highest since January 2020, data from consultancy Kpler showed.
Russia, usually India's sixth largest supplier of coking and thermal coal, could start offering more competitive prices to Chinese and Indian buyers as European and other customers spurn Russia because of sanctions, traders said, adding that the trade could also be boosted by a rouble-rupee trading arrangement.
About 870,000 tonnes of Russian coal have already delivered or are expected to be delivered at Indian shores until Mar 20, the highest since April 2020, Indian consultancy Coalmint says.
The number would be higher if more coal was loaded at Russian ports since mid-February, as it typically takes about a month for Russian vessels to deliver to India, said Aditi Tiwari, coal market head at Coalmint.
"Indian buyers have taken a backseat after the SWIFT ban and sanctions on Russia. They are looking out for alternatives from Australia and the US," Tiwari said.
A number of Russian banks have been cut off from the SWIFT secure messaging system that facilitates cross-border payments.
But at least three vessels carrying coal set sail to India from Russian ports after Russia launched its invasion of Ukraine on Feb 24, according to Refinitiv vessel tracking data and an industry source.
© 2024 - All Rights with The Financial Express
