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Sunday, February 19, 2012

Billion tonne steam coal market looms as India increases sea cargoes

Sunday, 19 Feb 2012

Bloomberg reported that steam coal may become the third commodity to surpass annual shipments by sea of 1 billion tonnes, joining crude oil and iron ore, as India raises imports of the solid fuel to feed new power plants.

According to data from Clarkson Research Services Ltd, a unit of the world’s largest shipbroker, seaborne coal trade will expand 4% to 956 million tonnes this year as Indian purchases gain 12% and imports into China climb 8%.

According to Mr Calum Kennedy, a senior analyst with Clarkson in London, deliveries may exceed 1 billion tonnes if Chinese power plants buy extra, cheaper foreign thermal coal.

Mr Ole Henry Senne COO of Singapore based SIVA Bulk Ltd whose vessels transport Indonesian coal to India said that “Before, the iron ore market was driving shipping markets. Now it’s India and China with their coal needs. If you took away the coal from India and the coal imported to China, there probably wouldn’t be a market.”

According to Clarkson, Indian imports of coal burned for power will have this year’s second strongest growth among all the 3.7 billion tonnes of global dry bulk commodities shipped by sea. The shipbroker projects a 17% increase to 104.2 million tonnes as Indian buying of coal used to make steel falls 3.4%. The fastest-growing trade is US iron ore imports, predicted to jump 33% to 1.6 million tonnes.

(Sourced from Bloomberg)

1 comment:

Coal said...

coal publications would suggest the commodity isn't going anywhere. Coal reports show if we have to live with it, we may as well reduce the impact of coal and CCS seems to be the best solution found to date. Cherry While for some an ideal world would see no reliance on coal industry to produce electricity,