• 50 mins Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 5 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 6 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 7 hours Rosneft Signs $400M Deal With Kurdistan
  • 9 hours Kinder Morgan Warns About Trans Mountain Delays
  • 16 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 21 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 1 day Russia, Saudis Team Up To Boost Fracking Tech
  • 1 day Conflicting News Spurs Doubt On Aramco IPO
  • 1 day Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
Ag Metal Miner

Ag Metal Miner

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends,…

More Info

Indian Coal Shortages has Steel Producers Worried

Indian Coal Shortages has Steel Producers Worried

Recent research on coal imports in India has worried the country’s steelmakers, which are already under pressure from the rise in iron ore prices and coal prices. According to the latest research conducted by Australia and New Zealand Banking Group Limited (ANZ), India may triple its coking coal imports within five years to meet surging demand from steelmakers and power producers.

Mark Pervan, the head of commodity research at ANZ, was quoted as saying that steel production in India might increase by about 10 percent a year in the next five to 10 years, driving demand for coking coal.

Over the last few years, India has been facing an acute shortage of coal, and power producers and steel mills are scrambling for imports.

Why the Shortage?

According to the Indian coal ministry, imports of coal are expected to increase to 80 million tons from 69.76 million tons last year. Market experts believe that the rising trend to import coal will ultimately force the steel companies to increase prices.
The Indian federal government has upped the figure of its estimated coal shortage, expected by March 2012. New estimates now put the coal shortage at 112 million tons, up from 83 million tons forecast in December 2010. The entire shortfall is likely to be met by imports.

Even though India’s domestic coal reserves are vast, the demand-supply deficit is high. A recent survey conducted by Research and Markets suggest that the demand-supply deficit of coal is estimated to grow at a CAGR of 17.2 percent till 2017. Exploration, technical, environmental and logistical issues have forced India to import coal.

Besides blending requirements, superior quality parameters and converging price trends of imported and domestic coal would lead to more imports. Indian companies have acquired overseas coal assets in Mozambique, Indonesia and Australia, but more efforts are required to reduce the coal imports. India’s coal production is forecast to increase to 554 million tons in 2012, more than the 533.12 million tons the country produced in the previous year.

The government has taken some steps to reduce the demand/supply gap. A new policy being drafted for auction of coal blocks is among the various other steps that are being taken to mitigate the shortfall. The coal ministry has been working on the auction policy that will replace the existing system of allocating blocks for over a year.

India is the third-largest producer of coal in the world, with the world’s fourth-largest reserves. Coal is one of the primary sources of energy, accounting for about 70 percent of the total energy consumption in the country.

Coal deposits in India occur mostly in thick seams and at shallow depths. Indian coal has high ash content (15-45%) and low calorific value. With the present rate of daily coal extraction in the country, the reserves are likely to last over 100 years.

By. TC Malhotra

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends, strategies, and trade policies that will impact how you source and/or trade metals and related metals services, MetalMiner provides unique insight, analysis, and tools for buyers, purchasing professionals, and everyone else for whom metals and their related markets matter.




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News