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Web Exclusive | July 2017

Indian coal demand to remain tepid| India-Ratings

India Ratings expects domestic coal consumption growth in India to remain tepid on account of subdued demand from thermal power plants, with an expectation of power plant capacity utilisation remaining sub-65 per cent in the medium term. It has estimated that prices for the benchmark Newcastle coal with 5,500 calories of energy value will hover between $50 per tonne and $60 per tonne between 2018 and 20220. India Ratings feels that government’s policies on large seaborne trade and persistent substitution to renewable energy are likely to have a significant influence on coal prices.

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