Coal news and updates

Essar Power to procure 2 capesize cargo of imported coal

December 23: Essar Power Ltd is likely to be in market in the first week of January to finalise deals for two capesize cargo of imported steam for loading in February, a source told ICMW.

“The company recently finalised deals for two similar cargo of Indonesian coal for loading in January and is currently studying the price movement before coming out with an enquiry in January,” the source said.

The deal for January loading was finalised in the range of mid $60 per ton CIF India (west coast) for high calorific value coal (in the range of 6,000 Kcal/kg), the source added.

The source further said Essar keeps on tracking the market on a regular basis and finalises deals whenever it feels the price if appropriate. “It is currently procuring 2 capesize cargo per month,” the source added.

The source further said Essar has no fascination for particular origin or type of coal, but is open to procuring fuel of 6,500 Kcal/kg, 6,000 Kcal/kg and even 4,800 Kcal/kg value.

The power generator is believed to have built a proprietary formula based on the consumption pattern of the last two years and takes a call on the type of coal to be purchased depending on which is available at what price in order to restrict the cost of generation of electricity.