September 14,
India’s spot coal purchases will revive by November if prices remain at current levels and freight rates drift lower, Indian importers and traders say.
India’s spot buying has been a critical price driver in the coal market for the past three years. Any rise or fall is soon reflected in international benchmark prices.
Last week benchmark October South African coal prices -a key supplier to India -fell by over $5/tonne in two days to $80 because a widely expected resumption in Indian buying from the beginning of September had failed to emerge.
Steel prices in India have fallen 15% in the past two months, which often happens during the monsoon June-September season of low demand, but steel and sponge iron manufacturer’s need for coal is likely to revive by November at the latest, Indian traders said.
“There is good demand and no sign of it coming down. In fact, the cement, sponge iron and power plants will all be back in the market to buy by October at the latest and they will have to buy from more suppliers,” an independent importer said.
Source: moneycontrol
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