VIETNAM’S BURGEONING COAL DEMAND
Thursday, November 7th, 2019
The spike in Southeast Asian demand, especially with Vietnam expected to see significant growth in imports, is offering solace to producers in Indonesia, Australia and the Russian Far East.
“Imports of coal into Vietnam would be about 40 million mt in 2019 and should exceed 50 million mt in 2020,” said Andy Bui, vice-president at Vietnam’s An Viet Phat Energy.
Vietnam’s coal imports are estimated to reach 80 million mt by 2025 and 110 million mt by 2030, according to Bui.
While thermal power generation accounts for the major share of coal consumption in Vietnam, demand from other industries like cement manufacturing and users of steam in the paper as well as dyeing industry was also seeing significant growth.
India, meanwhile, continues to remain the other major destination and is expected to see a sizable increase in imports.
“India’s total power generation and [especially] its thermal power generation has been quite poor. But [state-owned miner] Coal India’s production has been dismal in 2019,” said Echeverri, while estimating Indian imports of thermal coal to increase by 12 million mt in 2020 compared with imports in 2019.