CIL hikes thermal coal prices for the first time in over five years
Coal India Ltd (CIL) rationalised its thermal coal prices for the first time in over five years. CIL is India’s largest coal producer and meets 80% of India’s domestic coal demand. As such, CIL’s policies have a significant influence on the Indian economy, which prevents the company from increasing coal prices frequently. In the latest revision, the prices were hiked only for high-medium calorific value (CV) coal, whereas lower CV coal prices were left unchanged. The price revision came into effect on 31 May 2023. In this insight, we explore the following: • What is the rationale and the significance of the price hike? • How do CIL’s coal prices compare to other domestic producers? • What will be the impact of the revision on CIL’s bottom line? • How will the price hike impact different coal consumers? • Will there be any effect on seaborne coal demand?