India: Indian
manufacturing industry is currently going through a rough phase. High inflation
rate has kept demand in check on one end and poor availability of crucial raw
materials and power cuts has kept production levels low on the other end.
Demand for imported coal may look decent in medium to long
term till it reaches 120-125 million ton a year (currently around 50 million
ton) which may be a spot of limit for importing coal into India, for some time.
4200 GAR Indonesian Steam Coal is being made available at around $58 CFR on
east coast of India.
China: Coal
prices remain constant largely owing to slowdown in global economies like China
to a large extent. Experts are of the opinion that Chinese demand continues to
remain weak owing to high stock piles, low coal-fired power generation and an
overall slowdown in the economy. Chinese government had their second interest
rate cut recently.
There is little room for prices to improve as oversupply
will keep prices in check.
Europe: United
States has been pushing coal into European and Asian markets which has brought
pressure on European coal prices and also increased an already plentiful
supply.
Global oversupply in the 1st quarter of this year
has been largely fuelled by increased output from US, Russia, Colombia and
Australia. The US exported a record high of over 11 million ton of coal in the
month of April 2012.
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