KOLKATA : Coal India Ltd is planning to increase coking coal prices by 10% from Apr 1, a senior company official, on the condition of anonymity, told Cogencis.
“Though we have raised non-coking coal price in the current year (2013-14), we have not revised coking coal prices since February 2012,” the official said. Coal India produces nearly 15 mln tn of coking coal annually, mostly through its subsidiary Bharat Coking Coal Ltd. The price of coking coal depends on the ash content in coal and is generally 20-25% higher than that of non-coking coal, the official said. Coking coal is also generally better in quality compared to non-coking coal and is used for manufacturing steel and its alloys.
Steel-makers such as Steel Authority of India Ltd and Tata Steel Ltd, among others, meet a part of their coking coal requirement from Coal India’s supplies. The impact of the price hike, in terms of additional revenue, will not be significant for the coal behemoth as coking coal comprises only around 3% of its total coal production, which is seen at 460 mln tn in 2013-14 (Apr-Mar).
This financial year, Coal India has raised non-coking coal prices twice. In May, it raised prices by around 5% across grades and across all subsidiaries, and in December, it raised prices of coal at subsidiary Western Coalfields Ltd by 10%.
The two price hikes are expected to generate additional revenue of 22-23 bln rupees in 2013-14 and 28-30 bln rupees in 2014-15. -Cogencis