India seaborne thermal coal demand up after major domestic mine flooded: sources
Severe flooding at one of Coal India’ largest mines has pushed up demand for imported thermal coal, market sources said.
The flooding at Dipka mine, in Central India, was caused by heavy rain and hit affected coal output, they said.
Details of how much production was affected were not immediately known. Coal India was not available for comment.
The mine produces over 30 million mt a year of thermal coal, and the flooding could lead to fuel shortage at some power plants in eastern and central India, according to local media reports.
A Singapore-based trader said it would mean a slight uptick in Indian import demand.
An Indonesia-based trader also heard pockets of Indian restocking because of heavy monsoon rains causing flooding in Northern India.
“This could offer some support to seaborne prices,” he said.
“Heavy rains have been slowing down production,” an India-based trader said.
Another Singapore-based trader added that demand from India would likely be boosted as domestic power utilities might issue tenders for seaborne thermal coal in coming weeks.
“I expect the market to be up a bit next week, with both India and China back in the market,” he added.
S&P Global Platts assessed the price of Indonesian 4,200 kcal/kg GAR – or 3,800 kcal/kg NAR- coal at $33.50/mt FOB Kalimantan on a Supramax vessel basis Friday, up 50 cents on the day and 40 cents on the week. This was $1.50/mt higher on the month.