Coal prices to stay firm on higher power demand

E-auction of coal accounts for 15-20% of CIL's volumes but contributes 60-70% to the net profit

The prices of coal in the domestic market are unlikely to see any correction in the near future even as international thermal prices are expected to stay subdued.

Coal India Ltd (CIL), the largest producer, feels an increase in power demand would boost offtake and strengthen prices. 

The coal behemoth expects its e-auction prices to go up both for the regulated and non-regulated sectors. 

In the April-June quarter, CIL’s e-auction prices fell 10 per cent over the previous quarter, impacting its bottom line.  The realisation was low primarily because of low demand and low global prices. However, things