New Delhi, December 5 (IANS). Rising domestic coal production in India and a slowdown in the Chinese economy are expected to keep pressure on fossil fuel prices in Asian markets through 2025, S&P Global said in a report released on Thursday.
The report said that due to increasing domestic supply of coal in India and the government’s emphasis on reducing dependence on imports, industrial purchasing is likely to be limited to the domestic market.
Vignesh Sundaram, principal research analyst at Commodity Insights, estimates total imports to be around 206 million metric tonnes in 2025 due to increased capital expenditure on infrastructure.
He further said that due to increase in domestic production, imports may remain stable.
The report also fears that the demand for coal in the international market will reduce due to the slowdown in the Chinese economy.
China imported about 353 million metric tons (MT) of coal so far in 2024, according to the latest data from S&P Global Commodities.
China is likely to import about 380 million tons of thermal coal in 2025, slightly below 2024 imports, amid stagnant domestic supply and slowing coal-fired power generation growth, according to Pat C. Khoo, a senior analyst at S&P Global Commodity Insights. is less.
S&P Global Ratings report said that America may increase export duties on Chinese goods.
The report said, “We believe that the US will increase effective tariffs on imports from China to 25 percent in mid-2025 from about 14 percent currently. Due to this, Chinese GDP growth rate will be 4.1 percent in 2025. “, which is 0.2 percent lower than the September baseline.”
–IANS
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