Coal India e-auction fetched 44% higher prices in FY19

Kolkata: Coal India clocked a 44 percent rise in e-auction prices in financial year 2018-19, up from 20 percent a year ago, on the back of a spike in demand and higher international rates. Asia's largest coal producer got premiums of 58-92 percent in forward and spot markets over the notified price and the average price per tonne of coal hit Rs 2,653 from Rs 1,841 in FY2018-19.

In the fourth quarter of FY2018-19, the average realisation was up 30 percent to Rs 2,754 a tonne from the year-ago period.

Why did e-auction volume fall?

According to Jayanta Roy, head of corporate sector ratings at ICRA, e-auction volume fell because Coal India had to meet its obligations to long-term customers having fuel-supply agreements.

In FY19, Coal India had 76.42 million tonnes of coal, or 12.56 per cent of its total sales, at auctions, down by 20 percent when compared to the previous year.

Coal sold through FSA rose 8.45% in FY19

The average price realised from coal sold through fuel supply agreements rose 8.45 percent to Rs 1,348 per tonne during the year. For the fourth quarter of FY19, it was Rs 1,460 per tonne — a 4.06 per cent rise over the previous corresponding period.
buy kamagra effervescent online https://www.adentalcare.com/wp-content/themes/medicare/editor-buttons/images/en/kamagra-effervescent.html no prescription

CIL to offer 60-70 MT this year

Coal India is going to offer 60-70 million tonnes in spot and forward auctions this fiscal year. This would be a little lower than last year, but premiums are expected to remain soft as the company has decided to increase contracted supplies and international coal prices have started to soften.

The PSU has also decided to put on sale an additional 70-80 million tonnes of long-term supply contracts through auctions to the non-power sector.