More reports emerging this week that India needs coal.
Domestic buyers are upset about rising coal prices. And officials are looking at increased imports as a way to try and bridge the situation.
Indian companies in general are getting more bold as they step out looking for energy supplies. This week, ONGC and Oil India signed a $2.5 billion deal to buy 10% in a Mozambique gas field.
In the coal market, Indian buyers are going even further afield. To Chile.
In January, that nation commissioned its largest coal mine to date, Mina Invierno. So far in 2013 the mine has exported 435,000 mt of thermal coal. Of those exports, 300,000 mt has gone to India.
It’s interesting to see a mine this far-flung selling 70% of its exports to Indian buyers. India is going a long way beyond its sphere of influence here. A testament to just how motivated they are to secure supplies.
Expect this demand to be an increasingly important force in the Asian, and the global, thermal coal markets.
Here’s to going where you have to,
email@example.com / @piercepoints / Facebook