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Wednesday, 03 June 09
POWER DEMAND TO BOOST INDIA COAL IMPORTS DURING MONSOON - STEELGURU


Reuters quoted Indian coal importers said that strong demand for power in India is likely to keep coal imports at the maximum level possible in the June to September monsoon season.

In January importers said they expected India to import over 40 million tonne of thermal coal in 2009 but the total could be higher if imports do not slow substantially as usual during the monsoon.

Shipping analysts said China's surging imports of coal and iron ore have been a much more noticeable factor boosting prices in Asia as well as freight rates. One London based shipping analyst said "India's import demand has been more of a focus in coal than in freight where everybody's attention is on China because of the scale of what China is doing," adding that Indian coal demand is going on steadily in the background.

Traders said Indian end users and stock and sale traders have already built stocks of coal at ports ahead of the monsoon but further imports will be needed to meet demand through the summer.

Indian trade buyers said they are seeking any coal which can be delivered to India for less than USD 70.00 tonne CIF, a price acceptable to their end user power plant clients. This has mostly been South African during the past few weeks but traders Glencore sold around 10 cargoes of competitively priced Indonesian coal last week to several Indian buyers.

They said but the majority of west coast ports will continue to operate as normal this year. Kandla and Magdalla are among the few which will be severely affected. Goa will also slow operations. East coast coal ports such as Kolkata, Paradip, Vishakapatnam and Chennai will continue to work close to normal levels.

Source: http://steelguru.com/news/index/2009/06/03/OTY5MDY%3D/Power_demand_to_boost_India_coal_imports_during_monsoon.html



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