Coal news and updates

Coal import demand may slacken a bit

February 3: Thanks to a significant growth expected in the fourth quarter (January-March) in domestic production, India's demand for imported coal may slacken a little in the coming weeks, market sources said.

"Domestic production is expected to go up substantially in the fourth quarter. The coal stock position is also healthy. Besides, import prices are currently at a high if compared with six months ago," market sources said.

India's coal production increased for the fourth consecutive month in December 2013, rising 13% to 53.39 million tons (mt) compared to 47.25 mt reported in November.

According to Coal India sources, the miner aims to achieve around 95 million tons in the next two months.

Meanwhile, India's pithead vendible coal stocks rose for the second consecutive month as the same on the last day of December had risen 5.31% to 39.38 million tons (mt) from 37.41 mt recorded in November 2013, according to provisional data available with ICMW.

"Imports may, however, see an uptick if domestic producers falter or international prices drop substantially. Otherwise, it is expected to remain lukewarm for a while," the sources added.