As the global economy speedily bounces back from the aftereffects of the pandemic, coal prices have hit the roof. And with China, in the grip of an energy crunch, failing to supply enough coal to its industries, many are turning to India to fill the gap.
The global supply situation remains in a precarious position, with energy crises and supply chain breakdowns across continents. China is reeling under its own energy crunch, unable to keep up with the sudden bounceback of the global economy. This could spell an unexpected windfall for India. Indian steel and chemical companies could capitalise on the faltering supply of Chinese steel and chemicals.
China is the largest producer and consumer of coal. The country uses coal to power its thermal plants to generate electricity, and also supplies it to various sectors like steel and chemicals, that require coal for their manufacturing processes,.