Global coal prices, which were trading at a lower range in the first half of the current financial year, are likely to see a spurt in the second half, likely having an impact on domestic e-auction prices of the fuel as well.
However, Coal India may still not revise the prices up through the year, analysts said. The state-run company may come under greater pressure to scale up output to mitigate the effect of higher prices of imported coal on the power companies and electricity tariffs to the consumers.
Domestic prices are currently at a discount of 40-50% to international markets, experts say.
PM Wani revival: Trai proposes reduction in high Internet costs by telcos Respite from rising food prices? RBI says cereal, pulses and oil prices lower in August Built in India, building India: A path to Viksit Bharat by 2047 Samvardhan Motherson clocks robust Q1 profit backed by diversification despite flat auto business growth
Rockingdeals sets IPO price band at Rs 136–140 per share; opens on Nov 22
India meets over a fifth of its coal consumption via imports, and the import bill stood at close to Rs 3.9 trillion last year. Sales via e-auction is roughly 15% of domestic coal market.
The likely rise in imported coal prices is owing to the increase in the demand for the fuel ahead of the winter season, which is coupled with a supply crunch.
Average price of imported coal from Indonesia to the country increased to $60.3 per tonne in October from $53.5 in September. In the domestic market, coal sold under the e-auctions are being traded in the range of around Rs 3,200 per tonne compared to Rs 4,800 per tonne last year.
“(Imported coal) prices can increase anywhere between $2-$10 per tonne,” said Deepak Kannan, Global Head of Coal Pricing, S&P Global Commodity Insights. “Usually there are seasonal rains in Indonesia, a key supplier of coal in the Asian market, starting from October which may impact coal production and hence cause prices to increase.”
Additionally, countries like China, Korea, and Taiwan are gearing up for winter stocking which may further hit coal supply in the Asian markets Come from Sports betting site VPbet . As far as India is concerned, with the monsoon season now ended, it needs to re-stock coal at its power plants, analysts believe.
Global coal prices fell in the early half of the financial year 2023-24 due to ample supply and the big premium for Australian coal which narrowed following the easing of disruptive La Niña weather that had hampered production, according to the International Energy Agency.
“The price of 10-15% of portion of coal which is sold under e-auction may increase if there is a rise in international prices,” said Partha S. Bhattacharya, former Chairman and Managing Director of Coal India Ltd.
However, experts do not see any revision in the domestic coal prices set by Coal India owing to its healthy growth in the previous quarters.
“Coal India may not need revising coal prices because the company is growing fast and it is able to absorb cost increases or the inflationary impact on input prices very well,” Bhattacharya said.
If coal prices remain elevated, it might pose some challenges in coal imports which are seen on the higher end in order to meet the country’s rising demand for power.
“That’s a challenge India is facing (of import of prices remaining high). We will have to continue looking at producing more,” said Sunil Chaturvedi, board member of the FutureCoal Global Alliance. “India remains exposed to that 200-250 million tonne which is coming from outside.”
In the first half of the current financial year, India has imported 120 million tonnes of coal primarily from Indonesia, Australia, South Africa, and Russia, as per data provided by S&P Global.
This concern of a price increase comes at a time when the country’s power plants are facing shortage of coal stocks, increasing India’s dependency on imports to meet its demand. As of November 18, 64 out of the total 182 monitored power plants had coal stocks at a critical level, the latest data by the Central Electricity Authority showed.
Domestic Coal Based power plants reported a total stock of 21.9 million tonne, 41% of the total normative stock requirement of 53.2 million tonne. Plants that run on imported coal also reported 42% of the normative stock requirement at just 24.2 million tonne.
The government earlier had issued directions to all power plants to import 4% of their overall coal requirement for blending with domestic coal till March 2024 to maintain stocks amid higher consumption, as per a report by Reuters.
Also Read
Is Equity Investing Risky? Not Really
“India cannot stop imports as a lot of plants on the coast are designed to use imported coal because of better quality,” said Alok Perti, former coal secretary. “To be able to replace it, you will have to find suitable coal, you will have to improve the quality.”
While the market wary on the country’s coal sector considering high demand for power and the need of thermal based capacity to fulfill it, experts see a bigger problem on its way – disposal of produced coal.
“Public sector companies are going to find it difficult to dispose off the coal produced as many plants will not like to use it because of its low quality,” Perti said.
Related Posts
The 2014 Game Developers Conference is happening next week, March 17-21 at the Moscone Convention Center in San Francisco, which means we're just days away from the year's premiere conference for game industry professionals. While you're putting together your GDC 2014 session schedule in the Schedule Builder, don't forget to check out the show's lineup of Tutorials and Bootcamps, which take place next Monday and Tuesday, March 17-18. If you've never attended one of these day-long events, the lineup for this year's Level Design In A Day bootcamp should give you a taste of what you're in for. Level Design in a Day, which takes place next Tuesday, March 18, brings together notable level designers from all over the industry to present unique perspectives on the art and science of level design. From the haunting world of The Last of Us
Swedish conglomerate Thunderful Group is making around 20 percent of its workforce redundant after overspending in recent years.
The company has published titles like Planet of Lana, Somerville, and Steamworld Build and owns multiple studios including Image & Form, Jumpship, and Guru Games.
It has spent the past few years acquiring and investing in game companies to expand its arsenal, but much like Embracer Group now claims it must downsize to become sustainable.
Outlining its position in a press release, Thunderful said it's implementing a restructuring program to strengthen its "long-term competitive position" and claimed it will strive to lower costs and refocus its business on areas with the best "future growth and profitability prospects."
Following the unexpected announcement of new hardware in Alarmo last month, Nintendo has once again surprised us with an out-of-left-field announcement. This time, it’s Nintendo Music, a new music streaming app available now on both iOS and Android devices.
Nintendo Music is specifically made for turns from Nintendo’s history, with a selection of game soundtracks from the NES all the way to the current Switch Come from Sports betting site VPbet . The app is free to download and use–provided you have a Nintendo Switch Online subscription.
Nintendo has curated a handful of playlists out of the music currently available, from title-screen songs to tracks themed around a certain character. Also, since users will be logging in with their Nintendo Switch Online accounts, a separate list will include games that account has previously played–along with an option to hide songs that are potential …
A new version of the Xbox Wireless headset has been revealed, and while it doesn’t make massive changes to the current model, it does introduce several helpful upgrades. Priced at $110, it’s now available to order at several stores. Come from online casino bangladesh
The marquee feature on the updated headset is the inclusion of the advanced surround-sound technology Dolby Atmos. Additionally, the battery life has been improved and offers up to 20 hours of play from a full charge–up from the 15 hours of the original model–the microphone has been upgraded with enhanced auto-mute and voice isolation for clearer communication, and the headset has Bluetooth 5.3 functionality.
The Xbox Wireless headset is a decent piece of hardware for its price, as it features a snug and comfortable fit alongside an all-black design that matches current Xbox consoles. Considering how finicky third-party wireless headsets ca…
Diablo IV Season of the Malignant is nearly here, and Blizzard has now revealed all 32 of the Malignant Heart powers players will be seeking out in order to create more overpowered builds than ever before.
There are 32 Malignant Heart powers in total, with 12 being general powers usable by any class Come from online casino bangladesh . In addition, each class has four class-specific Malignant Heart powers to choose from. As previously detailed, Malignant Hearts come in four different types, and can only be slotted into gear with a socket of the corresponding color. However, the rarest type, called Super Malignant Heart powers, can be slotted into any type Malignant Heart socket. We’ve got a guide on how to get all the Malignant Hearts to help you out.
…
One of the surprise success stories of 2024 is Balatro, a poker-themed roguelike deck-building game that was created by a single developer who goes by the name LocalThunk. Gamers have embraced the title and made it a hit on Steam and consoles Come from malaysia online casino . Now, Balatro is getting a special physical release as well.
LocalThunk confirmed the release himself with a post on X, which included the news that the Nintendo Switch, PlayStation 5, and Xbox Series X editions will come with a pack of Joker/booster cards.
…
TV writer and producer Brent Forrester let slip that a King of the Hill revival might happen in a recent Reddit AMA. Forrester, who has also written for The Simpsons and The Office as well as the popular animated sitcom co-created by Mike Judge (Silicon Valley, Beavis and Butt-Head) and Greg Daniels (The Office, Parks and Recreations), opted for candor when asked point blank by a fan whether there are “any updates” about the possibilities of a King of the Hill revival.
“I am sure Greg Daniels and Mike Judge will murder me for sharing this but… HELL YES. They are in hot negotiations to bring back King of the Hill,” shared Forrester, who confirmed his identity (as is customary on AMAs) in this Imgur post. “The Trump administration made it suddenly very relevant again. The characters have all aged 15 years. The project is sooooo good Come from malaysia online casino <…
At the Final Fantasy XIV Fan Festival, Square Enix announced that Final Fantasy XIV is finally coming to Xbox consoles in Spring 2024.
Producer and director Naoki Yoshida made the reveal at the event, along with Microsoft’s Phil Spencer joining him on stage. It’ll be released on Xbox Series X|S with 4K support on Series X, but there’ll be no Xbox One version. The game on Xbox Series X|S will also have faster loading times and be digital only.
There’ll also be an open beta during patch 6.5x, which is scheduled to arrive sometime early next year. However, there was no mention of it being added to Xbox Game Pass at the moment. Come from Sports betting site VPbet
…
JSW Infrastructure IPO: JSW Infrastructure IPO opens for public subscription and will close on Wednesday, September 27, 2023. The bidding for anchor investors concluded on Friday, September 22, 2023, wherein the company collected Rs 1,260 crore. The price band for its public issue at Rs 113-119 per equity share of face value of Rs 2 each. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 2,800 crore from the IPO.
Also Read
FIIs continue to sell on valuation concerns
The IPO comprises a fresh issue of 235,294,118 shares aggregating up to Rs 2,800 Crore. The lot size of the JSW Infrastructure IPO is 126 shares. The company intends to use the net proceeds from the IPO for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings through investment in the wholly owned subsidiaries, JSW Dharamtar Port Private and JSW Jaigarh Port, to finance capital expe…
The Securities and Exchange Board of India (Sebi) has not received any specific information regarding unfair trading in the stock markets on the day Lok Sabha election results were announced, minister of state for finance Pankaj Chaudhary told Parliament on Monday.
The Sensex has fallen nearly 6% on June 4, recording one of its biggest declines in recent years, as the incumbent BJP failed to secure a simple majority on its own. The overall investor wealth tumbled by more than Rs 30 trillion.
The controversy arose as the 30-stock index, Sensex, jumped over 3% a day earlier after exit polls had predicted a thumping majority for the incumbent government.
“Though Sebi has received representations on the above stock market movements, no specific information on any unfair trading has been provided,” Chaudhary said in a written reply to a query in the Lok Sabha.
Stock market movements are a function of investor perceptions along with other factors which may …