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Thursday, 08 December 11
INDIA MAY SEE 41% ANNUAL GROWTH OF ITS COAL DEMAND DURING THE NEXT 5 YEARS - ICAP SHIPPING


India’s Ministry of Coal expects that India’s coal demand may face an annual 41% rise during the next 5 years, while its coal deficit is expected to double to 265 million tonnes in the 2016/17 fiscal year from the current level at around 137 million tonnes.

India imported around 90 million tonnes of coal in 2009 and 111 million tonnes in 2010, while a higher figure is reasonably expected for this year.

Should the coal shortfall be filled by imports in due course, India may possibly become the largest coal importer in Asia. On the face of it, enlarging imports create more coal stems shipped towards India, which can only be positive for the dry freight market.

However, both the better efficiency of India’s costal ports, through $60 billion of planned investments, and the close distance between India and major thermal coal suppliers will somewhat offset the boost to the freight market from the rising coal demand.
Source: ICAP Shipping 



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