The Francis Scott Key Bridge collapse in Baltimore, USA, has sent shockwaves through the Indian coal and petcoke markets, raising concerns about possible disruptions in the supply chain and price fluctuations.
Following a vessel collision with a supporting pylon, navigation through Baltimore Harbor, a vital hub for coal exports, has been suspended. This affects India, a significant importer of US thermal coal.
Experts from S&P Global Commodity Insights predict challenges ahead, foreseeing restricted shipments from Arch Coal and logistical obstacles for Indian importers.
One US-based trader cautioned, "The incident will likely hinder NAPP shipments from Arch Coal and pose numerous supply chain issues for India. There could also be ripple effects on thermal coal in Europe. However, India will feel the brunt of it. Keep an eye on petcoke prices; they might soar!"
Concerns about potential price hikes in petcoke, a coal refining byproduct, have been raised, adding strain to India's energy markets.
Yet, opinions among Indian market players vary regarding the extent of the pricing impact. While some express scepticism, noting that major suppliers like Consol and Arch have not declared force majeure, worries persist over potential shipment delays and their impact on India's energy sector.
Clearing the debris could take 10-15 days, during which no ship movement would be possible.
The port of Baltimore, crucial for US thermal coal exports, is pivotal in meeting India's energy needs. With navigation suspended, alternative routes and logistics must be explored to ensure a steady coal supply.
While short-term price fluctuations are anticipated, some believe the overall impact on coal prices may be contained if the waterway is cleared promptly.
Nonetheless, the situation remains fluid, and Indian stakeholders closely monitor developments to gauge the potential implications for energy markets.
As efforts are underway to assess and clear the debris, Indian coal and petcoke importers are preparing for potential disruptions, emphasising the need to find alternative solutions to safeguard the country's energy security in the wake of the Baltimore bridge collapse.
Follow us
