Insight
CIL hikes thermal coal prices for the first time in over five years
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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?
Table of contents
- Executive summary
- Prices were hiked only for high to mid-CV coal, whereas low-CV coal prices were left untouched
- Unlike CIL, Singareni Collieries Company Ltd (SCCL) revises its coal prices frequently
- The impact of the price hike will be marginal for the power sector
Tables and charts
This report includes the following images and tables:
- CIL’s revised notified prices for various coal grades, except for WCL
- SCCL’s revised notified prices for various coal grades
- Grade-wise coal production share, FY 2022
- Grade-wise coal production by CIL, FY 2022
What's included
This report contains:
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