Coal business 'robust despite price fall'
London, November 15, 2008
Dubai-based traders Coastal Energy, a wholly-owned subsidiary of the C&O Group, has said its coal trading business was robust despite the slide in coal prices due to strong demand from buyers.
"Despite the global slowdown, Indian demand for coal remains robust. The Indian government has asked utilities to import as much as possible before March and tenders for over 10 million tonnes have been floated for imported coal," a C&O Group spokesman said.
Indonesian coal is the cheapest option for Indian power generators but Chinese and Australian coal is expected to become increasingly price-competitive in 2009, he said.
"Coastal Energy has notched up deliveries of over 500,000 tonnes to Indian utilities and is participating in ongoing tenders," the spokesman said.
C&O Group's Indian coal customers include Tata Power, Tata Chemicals and Madras Cements.
C&O also sells ex-stocks at Indian ports to consumers in power generation, cement, sponge iron, paper, chemical production, brick and tile making.-Reuters