- After a record year of imports in 2019 which saw new highs in thermal coal imports and overall solid fuel imports, Jan 2020 stays with the growth trend with strong import growth in thermal and coking coal imports.
- However, thermal coal imports for Jan 2020 are lower than the import levels for Nov and Dec 2019.
- India’s coal production after sever disruption in Sep and Oct 2019 due to an extended monsoon has bounced back strongly. Jan 2020 saw the second highest monthly coal production ever in the country’s history and the strong domestic production is likely to continue for the months of February and March 2020 as well.
- With demand for coal in Europe is reducing, Jan 2020 saw the emergence of supply from Russia and Colombia. South African coal despite the high prices managed to increase its year-on-year volume but Indonesian coal lost some market share.
- While Coal India is building stocks at both the power plants and pit heads, there are no immediate coal supply constraints visible. There is also a visible pick up in thermal power generation and with the summer approaching, we can expect improved consumption demand for coal.
- Basis of vessel loading information, a lot of US origin thermal coal will reach to Indian sources in Mar and April 2020.
Recent Comments