Letter: With Indonesia prohibiting coal exports in January, industries that use coal feel hot.
Indonesia, the world’s largest thermal coal exporter has suspended fossil fuel exports due to fears of reduced inventory for domestic power plants.
Export prohibitions have caused coal prices – both domestic and import categories – up by rs 1,000-3,300 per ton in the local market, depending on the values of calorar coal, the industrial players said on Monday.
According to trade estimates, around 40,000 tons of coal are supplied every day to various industries throughout South Gujarat from the local port.
However, the industry that uses coal claims that they have fuel stocks for several weeks and they will not be affected by price increases if the problem is completed within a week.
The coal distributor then claims that supplies will be hampered because Indonesian coal is widely used in the region as fuel.
“Inventories will be affected and those who are piled will be useful.
Coal importers who are in transportation will also benefit from price increases,” said Navin Suratwala, President Association of South Gujarat Coal Suppliers (SGCSA).
“Prices soared to Rs 1,000 on that day Indonesia imposed a ban.
About 40,000 tons of coal were supplied to the industry in South Gujarat from the local port every day, “said Letters.
Coal is used as the main fuel in industry such as textile processing, cement, steel, paper and chemicals in South Gujarat.
“We currently have enough coal stock.
But heat will be felt if supply is not restored within 15 days.
Hopefully, a meeting between coal miners and the Indonesian government which will be held on Wednesday will lead to some positive results, “said a processor.
From Indonesian coal, the industry uses Australian and Indian coal and its quality, the price suddenly increased in the last two days because of the prohibition, “said Jitendra Vakhariya, president of the South Gujarat Textile Processor Association (SGPA).
Indonesia BS Coal Exports, South Gujarat Industry Feels Heat
