US ports may rise on Indian coal market

Some US ports could well be riding the “Indian Tiger” as talks have begun on possible exports of coal from the US to India, with officials from Coal India visiting the United States recently to meet with local producers.

The ports that may well benefit include Lamberts Point Coal Terminal at Norfolk, Virginia; the CNX Marine Terminal at Baltimore, Maryland, the Port of New Orleans, Louisiana; the Port of Mobile, Alabama; and the Port of Seattle, Washington.  Coal exporters could also use the Port of Vancouver.
 

Andrew Winkler, an analyst at Commodore Research explains, “Although Indian and American authorities are discussing possible coal exports, it might take years for a moderate volume of exports to actually begin.  India is notorious for taking very long to finalize deals like this.  That being said, Indian thermal coal demand is incredibly robust and Indian supply is at very low levels.”
 

This is against the background of overall Asian thermal coal demand continuing its growth and it seems likely US thermal coal exports to the region will begin relatively soon – although exactly when is hard to determine.
 

Mr Winkler adds that one other factor may influence India’s take up of this particular stream. “Colombian coal miners have recently announced they will begin striking due to wage demands not being met.  The strike could begin as soon as this week.  If the strike is sustained for a moderate amount of time, it would put further pressure on Indian thermal coal supply,” he says.
 

While this may not result in an immediate start to US coal exports to India “this development certainly makes it more obvious that India needs to diversify their thermal coal sources”, he concludes.
(Source:www.portstrategy.com)