Australia to target India as biggest potential coal market

australianmining.com Import & Export,  International 2019-08-26 09:20:06

India has been flagged as the market with the greatest potential for Australia's thermal coal, as the country continues its consumption of the commodity in order to meet increasing energy requirements.


The potential of the Indian market was revealed in the office of the chief economist's Coal in India 2019 report, which examines the future of thermal coal in India, its future import requirements and implications for Australian exporters.


As the world's third largest energy consumer and second largest thermal coal importer, India stands as an appealing market for Australian companies, according to Minister for Resources Matt Canavan.


"There is no market in the world that has as much potential for increased trade with Australia as India. This report clearly illustrates that potential," Canavan said.


"Australia is already a strong and reliable energy partner for India as it continues its rapid development trajectory and brings its people out of poverty. We can grow this relationship further."


Canavan said the report found India's coal consumption was likely to continue increasing over the next decade, and possibly beyond, to meet India's growing energy needs.


"India is a large coal producer and its domestic production is growing. Australian coal is a perfect complement, not a replacement, for Indian coal. We specialise in a high quality coal that can be easily blended with Indian coal to produce better outcomes for all," he said.


"There is also room for us to boost our exports of metallurgical coal to India as their steel sector continues to grow."


The growth of India's energy sector has been significant. Since 2000, more than 500 million people have received access to electricity, with coal providing around 44% of India's energy mix.


However, in 2017, there was still 168 million people living in India with no access to electricity, equating to almost seven times the population of Australia.


"If we could lift our thermal coal exports to India to the same market share we currently have with China – to just under 25% of their imports – we could export an additional 37 million tonnes of high energy, low ash thermal coal," Canavan said.


"That is the equivalent of three or four new Adani Carmichael–sized coal mines. If this investment occurred in the Galilee Basin, it would open up a new, sustainably-sized coal basin in Queensland."


Canavan estimated that based on current average prices in 2019, this would deliver an extra $3.4 billion in export income and also potentially create upwards of 4000 new jobs for Australian in the coal sector.



(Writing by Tammy Yang  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Asia coal sheds gains on demand concerns 2019-09-20

Asia-Pacific benchmark coal prices have shed most of this week's gains as concerns about waning demand began to reassert themselves against September 16's spike in oil prices. Global Coal

2 How much of China's 2019 coal import quota is left? 2019-09-20

The Chinese government has intensified administrative measures to control coal imports since 2017, issuing import quotas to individual customs and major importers. The country's coal imports remain

3 Chinese import thermal coal expected to stabilize ahead of holiday 2019-09-20

Chinese import thermal coal market is expected to wind down before the 7-day National Day holiday that starts from October 1, with buying interest fading away from end buyers and traders.

4 Port trading activity stays sparse in China thermal coal market 2019-09-20

Trading activity of spot thermal coal stayed sparse at northern Chinese transfer ports, as power plants still showed tepid buying appetite although their coal stockpiles dived to a four-month low.

5 U.S. natural gas futures dive nearly 4% on big storage build 2019-09-20

U.S. natural gas futures fell almost 4% on September 19 as a bigger-than-expected storage build and forecasts for less cooling demand next week knocked prices further off their highest in nearly five

6 China Coal Daily Track (Sep 19) 2019-09-19

Thermal coal Production area Coal supply is shrinking affected by explosive devices ban in Inner Mongolia, stricter control on coal sales invoices in Ordos of Inner Mongolia and Yulin of Shaa

7 Top 3 provinces contribute 70.2% of China's Jan-Aug coal output 2019-09-19

China's three largest coal bases – Inner Mongolia, Shanxi and Shaanxi – produced 1.69 billion tonnes of raw coal in the first eight months this year, taking 70.2% of the country's total, showed data

8 Mongolian coal exports notch a record high in Aug 2019-09-19

Mongolia exported a record high amount of coal to its main destinations, in August, showed data from the National Statistics Office of Mongolia, supported mainly by larger shipments to China.

9 World's 1st stainless steel futures will be listed in Shanghai Futures Exchange 2019-09-19

The world's first stainless steel futures will be traded on September 25 in the Shanghai Futures Exchange (ShFE), which will further enhance China's pricing influence in the international stainless st

10 China spot thermal coal demand remains dull; Oct outlook diverges 2019-09-19

Buying demand for spot thermal coal cargoes stayed dull at northern China ports, even after expectations on a potential supply shortfall were reinforced by news of production curbs in coal-rich Ordos

Most Read Articles

1 China coal output slows down in Aug, but still at a high level 2019-09-16

China's raw coal production slowed down in August, with the year-on-year growth decelerating to 5% from 12.2% a month earlier, but remained at a relatively high level, statistical data showed.

2 How much of China's 2019 coal import quota is left? 2019-09-20

The Chinese government has intensified administrative measures to control coal imports since 2017, issuing import quotas to individual customs and major importers. The country's coal imports remain

3 Spot thermal coal trades remain in doldrums at China Bohai-rim ports 2019-09-16

Trading activity of spot thermal coal remained in the doldrums at Bohai-rim ports in northern China late last week, although coastal utilities' coal stocks dropped alongside strong consumption.

4 Indonesian thermal coal prices keep firm in pre-holiday Chinese market 2019-09-16

Indonesian thermal coal prices maintained small rises in Chinese seaborne import market late last week ahead of the Mid-autumn holiday, bolstered by intensively-unleashed demand from Chinese utilities

5 Shanxi coking coal prices softening; Mongolian coal supply stable 2019-09-16

Coking coal market kept weakening in northern China's Shanxi province in the past week. Prices of both primary and blending coking coal were weighed down by sliding demand from coke producers, pointin

6 China to order industrial output cuts to combat winter toxic air 2019-09-19

China will implement a half-year environmental check starting October 1, accompanied by production cuts at key polluting industrial industries, as Beijing looks to lighten the toxic smog that chokes m

7 China regional curbs on thermal coal output may support spot market to gain 2019-09-18

Market talks about coal production curbs in Ordos, a major coal city in Inner Mongolia, have fanned bullish sentiment toward the near-term spot thermal coal market at northern ports. Sour

8 Vietnam Aug coal imports hit record high 2019-09-16

Vietnam's coal imports hit a record high in August, showed data from Vietnam customs, buoyed by surging domestic demand, especially in industrial sector. Total coal imports came in at 4.8

9 China's longest heavy-haul coal railway Haoji to open to traffic next week 2019-09-18

Haoji railway, China's longest heavy-haul coal railway spanning 1,814.5km from northern to central and eastern areas, is scheduled to go into operation on September 24, reported Jiangnan City Daily ba

10 China's slowdown deepens; industrial output growth falls to 17-1/2 year low 2019-09-16

The slowdown in China's economy deepened in August, with growth in industrial production at its weakest 17-1/2 years amid spreading pain from a trade war with the United States and softening domestic

Scan to download sxcoal.com mobile APP

X