Resource investors, take note: By 2025, just 10 years from now, energy consumption in Asia will increase a whopping 31%. A whole two-thirds of that demand, driven largely by China and India, will be for fossil fuels, most notably coal.
In the wake of his rock star reception at Madison Square Garden last Sunday, Prime Minister Narendra Modi emphatically announced to our nation’s top corporate and political leaders that India is now open for business.
While Chinese demand growth for commodities is not expected to be as robust as it has been historically, demand is expected to pick up throughout 2012. China’s rapid growth and increasing reliance on other countries for key resources has made a powerful case for commodities over the past several years.
International coal prices hit $124 per ton this week, the highest levels in five months, as strong demand from reconstruction projects in Japan and reduced supply from flood-ravaged Australia has made coal supply tight.