Coal news and updates

‘Steam coal prices to stay dull over 12-18 months’

November 12: Although spot prices of steam coal have reached “rock-bottom” levels, trading sources in India feel there is little scope for any significant upturn in the short-to-medium term.

“There is no doubt that spot prices of steam coal have reached the rock-bottom level, but we do not see any recovery soon,” an official from an Indore-based coal importer said.

“Prices are likely to remain low over the next 12-18 months,” he said, adding that “there will be an oversupply situation in the market till the end of 2015.”

Asked about supplies from Indonesia, the world’s largest coal exporter, he said that even if exports drop through December, as companies sought to obtain a new permit, it will be compensated by supplies from other regions.

“Every time there is a new policy implemented in Indonesia, the market is abuzz with speculations but Indonesian coal exports keep growing. As such, we do not see any remarkable change in that trend in the coming months,” he added.