New Delhi: Power trading solutions provider PTC India plans to trade about 1.3 million tonnes of coal in the current financial year, nearly three times higher than the quantity traded in 2011-12.
The plan for trading a higher amount of coal comes against the backdrop of falling international prices of the dry fuel amid sluggish global demand.
The company is into coal trading through its subsidiary PTC Energy.
"PTC Energy Ltd has planned to trade about 1.3 million metric tonnes of coal during 2012-13, more than three-fold as compared to 2011-12. A large portion of this would be supplied to PTC's tolling power projects," PTC India Chairman and Managing Director Tantra Narayan Thakur said.
In 2011-12 period, PTC Energy executed 4,24,000 tonnes of spot sale/purchase of coal.
The country is grappling with acute coal shortage, especially on account of lesser production by Coal India which is hurting various power plants.
According to Thakur, international coal prices have fallen as much as 30 percent on a year-on-year basis in last two years.
European debt turmoil as well as slowing demand from China and shift towards shale gas in the US is among the main factors for sliding global coal prices.
"China, the biggest importer of coal, is experiencing economic slowdown as compared to past few years.
"The Eurozone crisis has impacted production of steel and other manufacturing products, the other large consumers of coal thereby decreasing the demand," Thakur said.
He said that oil and petroleum product prices are also showing downward trend, resulting in downward pressure on landed cost of coal.
Further, Thakur pointed out that there has been a shift from coal to cheap natural gas/shale gas in the US.
"All these factors together have resulted coal prices fall internationally," he added.
First Published: Sunday, July 22, 2012, 11:28