Despite summer demand, June coal price index down 3.5% on high output
NEW DELHI: The national coal price index declined nearly 3.5% from a year ago in June as a 14.6% increase in domestic production during the month ensured sufficient availability in spite of a sharp rise in fuel demand from power plants amid an extended heatwave.
The index dropped to 142 points during the month compared to a little over 147 points in the year ago period, the coal ministry said on Friday.The premium on coal sold through open market auctions also declined, underlining demand-supply balance.
The decline also underlines fuel security and reduced input cost for user industries such as power generation companies importing coal for blending, which will indirectly benefit distribution utilities, as well as steel and cement industries.
The index combines coal prices from all sales channels such as under government-notified prices, auction and imports. It considers prices of coking and non-coking coal of various grades transacted in the regulated sectors such as power and fertiliser as well non-regulated industries. Established with the base year as 2017-18, the index serves as a reliable indicator of market dynamics, providing valuable insights of price fluctuations.
The index dropped to 142 points during the month compared to a little over 147 points in the year ago period, the coal ministry said on Friday.The premium on coal sold through open market auctions also declined, underlining demand-supply balance.
The decline also underlines fuel security and reduced input cost for user industries such as power generation companies importing coal for blending, which will indirectly benefit distribution utilities, as well as steel and cement industries.
The index combines coal prices from all sales channels such as under government-notified prices, auction and imports. It considers prices of coking and non-coking coal of various grades transacted in the regulated sectors such as power and fertiliser as well non-regulated industries. Established with the base year as 2017-18, the index serves as a reliable indicator of market dynamics, providing valuable insights of price fluctuations.
