India's Ministry
of Coal expects that India's coal demand may face an annual 41% rise during the
next 5 years, while its coal deficit is expected to double to 265 million
tonnes in the 2016/17 fiscal year from the current level at around 137 million
tonnes.
India imported
around 90 million tonnes of coal in 2009 and 111 million tonnes in 2010, while
a higher figure is reasonably expected for this year.
Should the coal
shortfall be filled by imports in due course, India may possibly become the
largest coal importer in Asia. On the face of it, enlarging imports create more
coal stems shipped towards India, which can only be positive for the dry
freight market.
However, both the
better efficiency of India's costal ports, through $60 billion of planned
investments, and the close distance between India and major thermal coal
suppliers will somewhat offset the boost to the freight market from the rising
coal demand.
Source:
ICAP Shipping
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