By Sethuraman N R and Sudarshan Varadhan
NEW DELHI (Reuters) – The US is predicted to spice up coal exports to India after China imposed tariffs on vitality imports from the U.S., 5 trade officers mentioned, probably eroding Australia and Russia’s market shares within the Indian market.
China’s Finance Ministry final week mentioned it could impose levies of 15% on imports of U.S. coal, which the officers mentioned may push U.S. miners to ship to India – the world’s second-largest coal importer behind China.
“Three U.S. cargoes that had been imagined to go to China have landed in India and round 10 extra cargoes are ready. These are big capesizes and that would additional drag down costs,” Vasudev Pamnani, director at India’s I-Vitality Pure Sources, mentioned.
“Extra U.S. coal imports may have an effect on Australia,” Pamnani advised the Coaltrans India convention on Monday.
In quantity phrases, the U.S. accounts for a small a part of Chinese language imports of coal, however the worth of coking coal shipments – used primarily by steelmakers – rose by almost a 3rd to $1.84 billion in 2024.
Malcolm Roberts, chief advertising and marketing officer on the greatest U.S. coal miner Peabody Vitality, mentioned on a convention name with analysts final week that extra U.S. coal may go to India and extra Australian coal to China because of the tariffs.
Australia was the dominant coking coal provider to India within the final decade, accounting for about 80% of all such shipments. Its share dwindled to 62% in 2024, as provides from the USA in addition to Russia and Mozambique helped India to diversify.
Australia may now regain some share in China – its predominant market the place it made up over two-thirds of coking coal imports earlier than China introduced an unofficial ban on such imports in 2021. Mongolia and Russia are at present the most important exporters of coking coal to China.
The U.S. accounted for 9% of the coking coal market in China in 2024, whereas Australia made up 8% of all such imports, Chinese language customs knowledge reveals.
(Reporting by Sethuraman N R and Sudarshan Varadhan; enhancing by Barbara Lewis)
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