India’s coal imports likely to grow in 2022: Fitch Ratings report
COAL & MINING

India’s coal imports likely to grow in 2022: Fitch Ratings report

According to a report by Fitch Ratings, India's coal imports are expected to increase marginally in 2022 compared to 2021 amid a decline in coal prices and a projected increase in higher economic activity.

Moreover, the increasing domestic coal production and prioritisation of coal for the power sector has helped ease the shortage of coal supply crunch in September-October 2021.

Coal dispatch to the power sectors has increased by 26% on a year-on-year (YoY) basis to 184 million tonnes (mt) during the October-December period, while total coal production increased by 9% YoY to 207 mt during the same period last year.

Domestic coal production is expected to rise gradually in 2022. The moderation in the coal prices and economic growth could increase coal import this year.

As per the report, improving coal supply has resulted in the Plant Load Factors (PLF) for coal-fired power plants increasing to 58% in December after declining to 55% or below from September to November 2021.

The PLF might remain strong during 2022, driven by robust growth in power demand and improvement in coal supplies.

In the Asia-Pacific region (APAC), Fitch said that the prices might witness a crunch in the near term due to seasonally weaker demand for coal and a ban on coal exports in Indonesia. The ban on coal exports by the Indonesian government has increased coal prices in January.

Recently, the power consumption in major Asian economies has stabilised. During the October-December period, China's domestic coal output had increased by 7.4% on a YoY basis, resulting in a full-year production of 4.7%.

Image Source

Also read: NTPC to increase coal imports to avoid power shortage

According to a report by Fitch Ratings, India's coal imports are expected to increase marginally in 2022 compared to 2021 amid a decline in coal prices and a projected increase in higher economic activity. Moreover, the increasing domestic coal production and prioritisation of coal for the power sector has helped ease the shortage of coal supply crunch in September-October 2021. Coal dispatch to the power sectors has increased by 26% on a year-on-year (YoY) basis to 184 million tonnes (mt) during the October-December period, while total coal production increased by 9% YoY to 207 mt during the same period last year. Domestic coal production is expected to rise gradually in 2022. The moderation in the coal prices and economic growth could increase coal import this year. As per the report, improving coal supply has resulted in the Plant Load Factors (PLF) for coal-fired power plants increasing to 58% in December after declining to 55% or below from September to November 2021. The PLF might remain strong during 2022, driven by robust growth in power demand and improvement in coal supplies. In the Asia-Pacific region (APAC), Fitch said that the prices might witness a crunch in the near term due to seasonally weaker demand for coal and a ban on coal exports in Indonesia. The ban on coal exports by the Indonesian government has increased coal prices in January. Recently, the power consumption in major Asian economies has stabilised. During the October-December period, China's domestic coal output had increased by 7.4% on a YoY basis, resulting in a full-year production of 4.7%. Image Source Also read: NTPC to increase coal imports to avoid power shortage

Next Story
Real Estate

The Only Way is Up!

In 2025, India’s real-estate market will be driven by a confluence of economic, demographic and policy-driven factors. Among these, Boman Irani, President, CREDAI National, counts rapid urbanisation, the rise of the middle class, policy reforms like RERA and GST rationalisation, and the Government’s decision to allow 100 per cent FDI in construction development projects (including townships, housing, built-up infrastructure, and real-estate broking services).In the top metros, especially Bengaluru, followed by Hyderabad and Pune, the key drivers will continue to be job creation a..

Next Story
Building Material

Organisations valuing gender diversity achieve higher profitability

The building materials industry is projected to grow by 8-12 per cent over the next five years. How is Aparna Enterprises positioning itself to leverage this momentum and solidify its market presence?The Indian construction and building materials industry is projected to witness significant expansion, with estimates suggesting an 8-12 per cent compound annual growth rate (CAGR) over the next five years. This growth is fuelled by rapid urbanisation, increased infrastructure investments and sustainability-focused policies. With India's real-estate market expected to reach $ 1 trillion by 2030, t..

Next Story
Real Estate

Dealing with Delays

Delays have beleaguered many a construction project in India, hampering the country from building to its ability and potential, and leading to additional costs incurred by the contractor. The reasons for delayIn India, delays mainly occur owing to obtaining statutory approvals, non-provisioning of right of way, utility diversion and approval of drawings and design. Delays are broadly classified based on responsibility and effect. Excusable delays arise from factors beyond the contractor’s control, such as force majeure events or employer-induced delays. These delays generally entitle th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?