Aluminium and cement sectors wrestle with escalating coal costs

Coal costs for the non-regulated sectors, primarily aluminium and cement, have gone up sharply by 20-34 per cent between April and October this year.

The rising coal costs stems from domestic coal shortage and hardening of seaborne coal prices. The situation for the non-regulated players has also been exacerbated by rupee depreciation.

As per the findings of a study by ratings firm Icra Research, coal prices have appreciated at a time when production growth remained firm for the non-regulated sectors. Between April and August this year, aluminium production expanded 14.7 per cent. Cement output in the same period rose 11.4 per cent.

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