Coal news and updates

Imported coal prices likely to remain low

April 8: International coal prices are likely to remain soft in the current fiscal (2015-16) because of lower demand from China, an official of Essar Power feels.

“Although there are demands of imported coal in India, demand of the same in China have slowed down a bit causing a slump in the coal prices. As China has decided to curb dependence on coal it is expected that the coal prices will remain low at least in near future. However, the slump in prices is helping us to a great extent,” the official told ICMW over phone.

Essar Power imported around 3 million tons of coal in 2014-15 from Australia, South Africa and Indonesia. He, however, declined to comment on the target of coal import for the current fiscal.

Meanwhile, according to other sources, international coal prices are likely to remain low in the long term (beyond 2017) as there will be a glut in supply.

“In next five years demands of imported coal is likely to slow down in India as well, and international coal supply will be increased. So the chances of prices moving up is rather bleak,” said a Delhi based importer to ICMW over phone.