State-owned Coal India is planning to increase Coking Coal prices by 10% from 1 Apr, 2014.
CIL produces nearly 15 MnT of Coking Coal annually and a large quantity comes from its subsidiary BCCL (Bharat Coking Coal Limited). Coking Coal prices depend on the ash content in Coal which is generally 20-25% higher than Non-coking.
Coking Coal is also generally better in quality compared to Non-coking and used for manufacturing steel and its alloys.
[su_quote]“Though, we have raised Non-coking Coal prices in the current fiscal i.e. FY14, we have not revised Coking offers since Feb’12,” said by CIL’s official.[/su_quote]
Among others, steel-makers such as Steel Authority of India and Tata Steel, meet a part of their Coking Coal requirements from Coal India’s supplies. The impact of the price hike, in terms of additional revenue will not be significant for the Coal behemoth. Coking Coal comprises only around 3% of its total production which is seen at about 460 MnT in FY14 (Apr-Mar).
This financial year, Coal India has raised Non-coking Coal prices twice. In May, it raised offers by around 5% across all grades & subsidiaries and again raised Coal prices at subsidiary Western Coalfields by 10% in December.
The two price hikes are expected to generate additional revenue of 22-23 billion in FY14 and 28-30 billion in FY15.
– Sourced
Leave a Reply