Asia is currently experiencing its most significant hydropower crunch in decades, with China and India, the two countries that account for approximately three-quarters of Asia’s power generation, witnessing sharp declines.
Concerns on coal have also come from political quarters, as Power Minister RK Singh describes the situation as "touch and go" By - Mohammed Kudrati | Boom Live India is running perilously low on coal for thermal power generation, shows data from the Central Electricity Authority. According to their daily release on coal stocks through the National Power Portal, 15 of India's 135 coal-fired thermal power plants have zero days worth of coal, which is as of September 30. On average, the data shows that there is only four days worth of coal stock, that is 8.082 million tons of coal. The data show that the daily requirement for coal across all categories of plants is 1.825 million tons. 104 power plants have critical or super critical supplies, which the data show is eight days or less worth of supplies...Full Story
Heavy rains and the worst floods in 50 years have shut the world’s largest coal-export harbour, but the impact from the closure of Australia’s Newcastle port is likely to hit hardest in India.
Rainfall of more than 1 metre (3.3 feet) in places in the past few days, and the threat of more to come, led to the shutdown of railways from coal mines in the Hunter Valley, north of Sydney, and the coal loaders at Newcastle Port, which shipped some 158 million tonnes of the fuel last year.
The bulk of the coal shipped from Newcastle is high-grade thermal coal used in power plants, along with smaller volumes of some grades of coal used to make steel…Full Story
Expensive freight rates for chartering Panamax and Supramax bulk vessels have forced traders with iron ore and pellet cargoes from East Coast India to China to opt for bigger Capesize ships in a rare move, sources said.
The East Coast India-to-China route is usually dominated by smaller bulkers given the stem sizes traded on this sector are largely 50,000-55,000 mt.
The sharp rise in hiring Supramax class ships, which are typically in the 52,000-57,000-dwt range, have seen charterers combining three 50,000-mt (plus/minus 10%) stems to ship them on a Capesize.
Time-charter rates on Supramax ships have been heard fixed around $31,000/d for a tonnage opening in Chittagong for a trip via East Coast India to China, while the voyage charter rate was heard indicated in the $20-$22/mt levels for a 55,000-mt (plus/minus 10%) iron ore cargo from Paradip to China…Full Story
India’s coal imports have revived in recent months to close to pre-pandemic levels, but the market shares of the countries supplying cargoes has shifted, mainly as a result of China’s dispute with Australia.
India imported 17.56 million tonnes of thermal and coking coal in January, according to vessel-tracking and port data compiled by Refinitiv.
This was down slightly from December’s 17.74 million tonnes and 18.02 million in October, but a touch above November’s 17.54 million…Full Story
India’s coal imports, depressed by the impact of coronavirus this year, regained ground in September, but in an uneven uptick – shipments rose for higher-grade coking and thermal grades, but slid for lower-rank fuel used mainly in power plants.
India’s total coal imports in September were estimated at 14.62 million tonnes by Refinitiv vessel-tracking and port data, up from 12.97 million in August.
That was the strongest performance by the world’s second-biggest coal importer since April, although imports were still down 6.3% from the 15.61 million tonnes recorded in September 2019.
For the first nine months of the year, imports were estimated at 128.24 million tonnes, a 17% slide from the 154.8 million in the same period last year…Full Story
India plans to significantly reduce its thermal coal imports in “the next few years” to save foreign exchange and create jobs through the development of existing and new coal blocks, a senior official in the federal coal ministry said on Tuesday.
Coal is among the top five commodities imported by India, the world’s largest consumer, importer and producer of the fuel after China.
India spent 1.58 trillion rupees ($21.28 billion) on importing 247 million tonnes of coal, including 197 million tonnes of thermal grade, in the fiscal year to March 2020, M. Nagaraju, a joint secretary in the coal ministry, told a seminar.
“As per our assessment, we can actually substitute between 110-120 million tonnes of coal. We will not be able to do this year, but certainly we will do in the next few years,” Nagaraju said, without giving more detail on the timeframe.
He said increasing local coal production would help to improve the economies of states in central India, where most coal mines are located..Full Story
The country’s coal imports registered a drop of 29.7 per cent to 48.84 million tonnes (MT) in the April-June period of the ongoing financial year, according to industry data.
India had imported 69.54 MT of coal in the April-June period of 2019-20, according to provisional compilation by mjunction, a B2B e-commerce joint venture between Tata Steel and SAIL that also publishes research reports on coal and steel verticals.
The drop in imports assumes significance in the wake of the government mandating state-owned Coal India Ltd (CIL) to replace at least 100 million tonne (MT) of imports with domestically-produced coal in 2020-21.
The country’s coal imports also dropped 22.5 per cent to 15.22 MT last month, against 19.64 MT of coal imported in June last fiscal, it said…Full Story
India’s imports of coal collapsed to the weakest in at least five years in May, as the economic lockdown in the world’s second-biggest importer of the polluting fuel took its toll.
Imports were estimated at 9.17 million tonnes in May, according to vessel-tracking and port data compiled by Refinitiv, the lowest result since Refinitiv started collating data in January 2015.
While the numbers are still subject to revision, it’s clear that May’s imports will come nowhere close to the 14.64 million tonnes in April, or the 21.2 million tonnes in May last year.
There is little doubt that the major contributing factor to the slump in coal imports has been the lockdown of much of India’s economy, which started in March and has now been extended in certain areas until the end of June.
India’s cases of the novel coronavirus have surged past 180,000 and the associated COVID-19 disease has claimed more than 5,000 lives…Full Story
To compensate for the low domestic demand, Indian players are looking to cater to export markets.
India Ratings and Research (Ind-Ra) has published its COVID-19 Impact assessment for India’s steel sector. The report highlights key themes and expected outcomes while presenting Ind-Ra’s revenue base case assumptions, its updated sector outlook, a steel sector cycle study and a break-even analysis of key market players. The agency has also covered Ind-Ra’s recent rating actions. This is in continuation of the sector market wires and reports published during March 2020 and April 2020.
To compensate for the low domestic demand, Indian players are looking to cater to export markets. Indian products’ price competitiveness may seem to have improved with lower iron ore prices than international iron ore prices. Chinese steel producers’ cost of production has been going up due to high raw material costs and environmental compliance costs…Full Story