Coal demand likely to improve in India by 2021
Coal demand is set to revive by 2021 in India and other Asian nations, including China, which are the major consumers of the fuel, according to Moody’s Investors Service report.
According to ET, Moody’s said in its report: “Our inaugural stable outlook for the global coal industry reflects our expectation for an improvement in demand and pricing benchmarks over the next 12-18 months.”
The report said there will be some recovery in demand in key coal consuming sectors, such as power and steel, owing to improving global economy. As economic activities resume, improving supply and demand balance, coal prices will rise modestly in many regions in 2021, the report noted.
“Demand for coal in China and India, which consume over 60 per cent of the world’s coal, will recover modestly in 2021 after dropping significantly in 2020. Australia will maintain coal production levels in 2021,” the report said, stated ET.
In the post lockdown phase, Chinese producers will see their income rise, benefitting from government measures. However, Indonesian producers are expected to continue earning less, it predicted.
Any spur in the Covid-19 cases in key Asian import markets of Japan, Korea and Taiwan could undercut the modest demand recovery that is expected in 2021.
Source: India Blooms