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Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

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India And China Vie For Coal Supply

India's coal-fired power sector is in trouble. As of yesterday, 30% of Indian coal-fueled plants were at "critical" levels of coal stockpiles.

And now India isn't the only major coal consuming nation facing a shortage.

Last week, China's Ministry of Railway announced it is desperately trying to get more supply to Chinese coal-fired power plants.

The Ministry is putting 2,614 more trains into service in order to deliver coal. Officials noted that coal stockpiles at 349 Chinese power plants have "dropped to the danger mark or even below it."

India's coal problems are driven by a flawed market and pricing structure. Some of China's problems are more temporary. Including an unusually cold winter, and recent government measures to conserve energy and reduce carbon emissions.

Nonetheless, the two super-nations are finding themselves going head-to-head for coal supply. Asia-shippable coal deposits are going to benefit.

Here's to moving those trains out.

By. Dave Forest of Notela Resources




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