Coal news and updates

BCCL in a fix as international coking coal prices fall

April 1: Bharat Coking Coal Ltd (BCCL), which had insisted on supplying coking coal to Steel Authority of India Ltd (SAIL) at the internationally-linked price, is now facing difficulties in supplying the material to the steel major because of a steep decline in coking coal prices in the international markets, an official from SAIL said.

"BCCL had forced us a few years back to benchmark its coking coal prices to international rates despite its quality being not up to the level of the imported material. However, a formula was proposed wherein the prices of coking coal supplied by BCCL was fixed at a discount to international prices because of inferior quality. However, with the recent fall in international prices of coking coal, the miner is facing difficulties in supplying the material at new prices," the official said.

Incidentally, the prices of prime grade hard coking coal has declined to $108 per ton FOB Australia as on March 31, 2014 as compared to contracted price of $143 per ton for the January-March, 2014 quarter and $235 per ton in the October-December quarter of 2011.