Imported thermal coal prices may soften from October
KOLKATA: Imported thermal coal
prices are likely to soften from October
as china is expected to reduce imports,
which will lower fuel costs for coastal
power plants, including those run by
the Essar, Tata and Adani Groups.
Imported coal prices have risen in recent months because china increased imports while production in Indonesia declined due to incessant rains. “We expect rising coal prices to plateau in august and then start to dip from October," a senior executive at a coastal plant said.
Sector experts said Chinese policies have had a significant impact on prices in the past year. "In June, the Chinese government allowed its mines to produce an additional 200 million tonnes for the entire year. This additional production is expected to hit the market after September, just in time for the winter restocking period for utilities. This would put downward pressure on imported coal prices as more utilities opt to buy domestic material," said Deepak Kannan of S&P Global Platts.
