Coal news and updates

No fresh cargo of US coal lined up for India: Source

None of the major suppliers of US origin steam coal to consumers in Northern India are planning to load any fresh cargo for unloading on west coast of India because of a temporary slowdown in demand due to huge fog in parts of the regions, a source said.

“There is already a stock of around 1 million tons of US coal lying at various ports on West Coast and the despatches in recent weeks have slowed down a bit due to temporary slowdown in demand from Northern India,” the source said.

“It has become difficult to move material to Western Uttar Pradesh or Punjab as unloading there has become a bit difficult because of foggy weather conditions prevailing in the region,” the source said.

“The despatches of US coal to Norther India from Kandla port was going on pretty well till the second week of January, but after that there has been a slowdown in despatches due to adverse weather,” the source added.

According to the source, as much as 70,000 tons weekly or around 10,000 tons per day of US coal was getting despatched from Kandla to brick kiln makers in Northern India, but after January 17, the despatches are down to 7000-8000 tons per day.

“Because of a slowdown in despatches and huge stock already lying at the port, suppliers appear to have decided not to load fresh cargo as the brick season will come to an end in next few months and any vessel to be loaded now will only arrive after 40-45 days,” the source said.

Meanwhile, ICMW learnt that one trader has recently loaded a vessel of US coal that has already sailed last week, but that vessel is likely to berth on East Coast.

SOurce: ICMW