Coal India the world's largest coal producer is planning to
increase the price of the best quality of coking coal it supplies to Steel
Authority of India Ltd.
Bharat Coking Coal Ltd a unit of CIL is planning to charge
80 %of the landed import price from April compared to 70 % at present, said Mr.
Ashoke Sarkar Technical Director. The unit supplies 1.5 million metric tons of
coal to the state-run steelmaker, he said. The company also plans to change
prices every month beginning April, compared with quarterly pricing now.
The increase in domestic rates may counter the benefit of
lower international coal prices at the steelmaker. Steel Authority and
competitors in India are negotiating coking coal prices as low as $160 a ton for the quarter ending March, a 32 % decline from previous year
prices. High production capacities and slowing demand in Europe have
brought down prices of the steelmaking ingredient last year.
“We are proposing the new pricing formula only for washed
coking coal, all of which goes to Steel Authority,” Sarkar further added.
The steelmaker buys about 3 million metric tons of coking
coal from Coal India, or about 25 % of its need and imports almost 70 % of its
requirement which is mostly from Australia.
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