Coal news and updates

Coal import demand may go up

March 3: After a subdued trend in February, India's coal import demand may see a jump in the coming weeks as domestic supply wanes and prices in the international markets ease further, sources said.

Domestic coal production suffered a jolt as Coal India Ltd (CIL) reported a sharp fall in production for February 2014. Also, off-take was down month-on-month compared with January. With production down, the stockpile will also be reduced in the coming weeks.

The tight supply is expected to prompt fresh enquiries from Indian buyers. In fact, at least three companies are currently in the market looking for imported material, the sources said.

Meanwhile, coal prices at Richards Bay Coal Terminal (RBCT) have dropped by around $4 per ton FOB last week. Indonesian coal prices have also remained flat. With the rupee remaining range-bound, the short supply in domestic market may prompt buyers to go for imported coals, they added.