This week a very important news for all companies associated with the coal market came out. One of the countries among the biggest importers of the commodity announced it will change its focus and seek export opportunities.
By Coal India Ltd., which is the biggest coal producer, announced that it will start exporting because of the increased domestic supply.
The country’s authorities have also confirmed that they will focus their efforts in this direction, having reported record production of raw material in mines across India.
The increased production and reduced demand in the country have caused significant accumulation of reserves in the energy sector. Excess there has reached 50 million tons and Coal India is forced to seek other markets for its production.
Such a change in the policy of the country will have huge implications on the global coal market, write from the site OilPrice.com.
The reason is that until now India has been one of the largest markets for import. For the fiscal year that ended March 31, 2015, the Asian country has imported a record 212.1 million tons.