Page 3 - Coal Prices

Coal prices to stay firm on higher power demand

Prices of coal in the domestic market are unlikely to see any correction in the near term even as forecast for international thermal coal prices remains subdued.Coal India Ltd (CIL), the largest producer feels an uptick in power demand would boost offtake and strengthen prices. The coal behemoth expects its e-auction prices to go up both for regulated and non-regulated sectors. In the April-June quarter, CIL's e-auction prices fell 10 per cent compared to the previous quarter, impacting its bottom-line. The realisation was low primarily because of muted demand and lower global coal prices. However, things would not be stressed in the coming days, said a senior CIL official."The off-take situation is improving and the average coal realisation is expected to go up. As the demand for power is expected to rise, power producers would be in need of higher coal volumes and e-auction prices would firm up", he said.E-auction of coal accounts for 15-20 per cent of CIL's volumes but contributes .