Coal news and updates

CIL to hike coking coal prices by 10% from April

Coal India Limited is planning to increase coking coal prices by 10% from April 1st 2014.

A senior company official said that “Though we have raised non coking coal price in the current year (2013 to 2014), we have not revised coking coal prices since February 2012. Coal India produces nearly 15 million tonnes of coking coal annually, mostly through its subsidiary Bharat Coking Coal Limited.

The price of coking coal depends on the ash content in coal and is generally 20% to 25% higher than that of non coking coal. Coking coal is also generally better in quality compared to non coking coal and is used for manufacturing steel and its alloys.

Steel makers such as Steel Authority of India Limited and TATA Steel Limited among others, meet a part of their coking coal requirement from Coal India’s supplies.

This financial year, Coal India has raised non coking coal prices twice. In May, it raised prices by around 5% across grades and across all subsidiaries and in December, it raised prices of coal at subsidiary Western Coalfields Ltd by 10%.

The impact of the price hike, in terms of additional revenue will not be significant for the coal behemoth as coking coal comprises only around 3% of its total coal production, which is seen at 460 million tonnes in 2013 to 2014 (April-March).

Source: Freepressjournal.in/Coal Guru