Coal prices saw significant gains for the third consecutive day driven by Russia's intention to increase coal exports to India in order to capitalize on rising demand. Coal prices were also supported by a surge in oil prices. Reporting from Refinitiv, the price of the ICE Newcastle benchmark November coal contract on Monday (7/10/2024) rose 2.27% at US$153 per ton. This position is the highest since December 11, 2023.
According to Reuters, Russia is keen to increase coal exports to India to capitalize on growing demand for the fuel in the Asian country, China remains the largest buyer of Russian coal, but Moscow has stated that India may surpass China as early as the next decade, as Beijing plans to reduce its use of coal for power generation.
India is increasingly reliant on coal to meet record electricity demand, with the increase in coal-based power plant output earlier this year outpacing renewable energy growth for the first time since 2019. India's coal production in the last fiscal year to March 31 reached a record 997,828 million metric tons, a 12% increase over the previous year. More than 75% of total power generation in India will come from coal by 2023.
India will import 176 million tons of thermal coal by 2023, mainly driven by power generation needs. Russian exports to India reached 26.2 million tons last year, up from 20 million tons in 2022. Russia is now the largest supplier of crude oil to India thanks to the diversification of trade relations from Europe, which was previously Moscow's main business partner.
Source : cnbcindonesia.com
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