Bumi Plc expects India to overtake China as its largest customer as consumption surges in the South Asian nation.
The report quoted Mr Andrew Beckham CFO of Bumi as saying that “It used to be the case that the only way you sell is to China, but now India will pick up anything that China won’t take. I would say India will be our largest customer next year.”
Mr Beckham during an interview said that China imports coal from Indonesia when it’s cheaper than or equivalent to domestic prices, while India is willing to pay a higher spot rate. India and China will be the dominant markets for Indonesia’s coal exports in the near future.
Mr Beckham said that Indonesia’s high-grade coal appeals to India, where most of the output is of a low grade that needs to be mixed and treated first. He added that the trend of China’s imports could change with if spot coal prices decline or the yuan appreciates at a faster pace.
According to the International Energy Agency, the thirst for power generation in Asia’s biggest energy users will boost China’s share of global coal consumption to 48% in 2035 and India’s share to 15%.
Source : steelguru.com