Coal prices may slide on global fall
Coal prices may soften in the coming months, bringing respite to cement companies. The market expectation is that coking coal price is likely to depreciate by $30-$40 per tonne but there may be a drop of $10 per tonne on thermal coal. A drop in global commodity prices and softening of crude oil coupled with a sluggish demand from Japan are likely to have a cooling effect on coal prices. Analyst expects the prices of coking coal to come down by $30-$40 per tonne as the situation has improved post-Australian floods. They fell this will have an impact on the Indian prices as well. Australian coking coal futures is hovering around $330 per tonne and the spot price is $320. India imports around 92 million tonne coal annually. Of this, the country imports 28 million coking coal and the rest 64 million tonne is thermal coking coal. India produces around 4 million tonne coking coal annually. The Planning Commission has predicted that the coal shortage in India will soar to 200 million tonne by the end of the 12th Plan (2012-17), with a demand of 1,000 million tonne against a production of 800 million tonne.