• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 3 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 4 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 21 hours Apology Accepted!
  • 2 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 2 hours Why Oil could hit $100
  • 3 hours Putin Paid Militants to Kill US Troops
  • 9 hours The Political Genius of Donald Trump
  • 24 hours U.S. natural gas at major disadvantage in Europe and China.
  • 1 day Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 3 mins Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 1 day CoVid in Spain, 9 months before China
  • 1 day The world is headed for big problems - interview with very smart economist
Dave Forest

Dave Forest

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

More Info

Premium Content

The Final Piece of The India Coal Boom

It's amazing when you watch things set up perfectly.

For months, I've been writing about India's surging coal demand. Which should see the nation's imports of thermal coal rise by about 50% this fiscal year.

Amid this rapid expansion, there's been one factor keeping a lid on global coal prices: Indonesia.

Indonesian production of thermal coal has grown almost in step with Indian import demand. Making this the go-to source for Indian coal importers. But news this week suggests that's about to change. Potentially setting us up for the final act in the Indian coal boom.

The Indonesian government announced last week it will limit coal production for 2014. Setting an output target of 397 million tonnes.

This is extremely significant. Because that number is actually about 6% less than the 421 million tonnes of coal Indonesia mined in 2013.

Sources on the ground have suggested that this should lead to slowed growth in Indonesia's exports. Factoring in existing coal stockpiles, imports might rise slightly in 2014--but only by about 10 million tonnes above 2013 levels.

That's probably not going to cut it when it comes to satisfying burgeoning coal demand in India. Indian imports are on pace to grow by 50 million tonnes during the current year.

A loss of supply from Indonesia would thus leave Indian buyers in the lurch. Forcing them to scramble for supply elsewhere.

Coal projects in South Africa may benefit immensely. That nation is one of the only major coal producers positioned for export to India. During January, South Africa's Richards Bay Coal

Terminal sent 28% of its export shipments to the "South Asia" region that includes India.

Significantly, India's largest coal miner--Coal India--announced late last week that it has signed a new deal targeting South African coal. The firm inked an agreement with the South African Department of Trade and Industry to explore "mutual prospects" in the coal sector. With one of the stated goals being "acquiring mining concessions".

Judging from the numbers, we could see some big deals here as Indian buyers attempt to lock down much-needed supply. Also look for India to be very active anywhere else they can find coal around the Indian Ocean sphere.

Here's to the final act,

By Dave Forest


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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