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Thursday, 17 July 14
INDIAN GOVERNMENT WISE TO TAKE ADVANTAGE OF CURRENTLY LOW THERMAL COAL PRICES AND SHIPPING RATES - JEFFREY LANDSBERG

With thermal coal import prices (and also shipping rates) very low at present, India's government would be very wise to take advantage of currently low prices and significantly increase thermal coal imports, Jeffrey Landsberg, Managing Director of Commodore Research & Consultancy said. Commodore Research publishes Weekly Dry Bulk Reports that include detailed analysis on India.

According to Jeffrey Landsberg, Indian power plant coal stockpiles have now fallen to 10.9 million tons, a critically low level that is the lowest amount seen in over nineteen months.  At the same time, Indian electricity demand continues to surge and growth in hydropower production remains much lower than seen in previous years, as India is experiencing a much weaker than normal monsoon season this year.

Commodore Research & Consultancy's Managing director added that, critically low power plant coal stockpiles in India have become a very significant issue, and the government would be very wise and prudent to quickly green light a further increase in coal imports.  There is little time to spare, unless the government wants to face extreme electricity shortages like the ones that occurred back in the summer of 2012.  On July 30, 2012, India experienced an extremely large power shortage that reportedly affected as many as 300 million citizens.  July 31, 2012 saw a second (even larger) electricity shortage that reportedly affected as many as 620 million citizens.  These shortages were well documented by the global media and led to a great deal of embarrassment by the Indian government (as well as real hardship for Indian citizens). 

Concluding his analysis, Jeffrey Landsberg said that, this summer, however, India's power plant coal stockpiles haven continued to fall and stand at a critically low level.  A further increase in thermal coal imports is likely to occur during the next several weeks unless huge electricity shortages should be allowed to occur again.  The time to take advantage of low thermal coal import prices (and currently low shipping rates) is now.

About Commodore Research & Consultancy
Commodore Research & Consultancy is an independent New York City-based consultancy that focuses on the global demand, supply, and seaborne trade of industrial and agricultural commodities, with a particular focus on China.  Commodore Research & Consultancy also offers two standard report subscriptions (Dry Bulk Report Subscription and China Report Subscription).

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