National coal index records steep fall, hints at sufficient fuel stock
New Delhi: The National Coal Index (NCI) fell a significant 33.8% year-on-year to 157.7 points in May, in an indication that supplies in the country remain sufficient. “The National Coal Index (NCI) has shown a significant decline of 33.8% in May 2023 at 157.7 points compared to May 2022, where it was at 238.3 points, which indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands," the coal ministry said in a statement. Similarly, NCI for non-coking coal declined 34.3% on year to 147.5 points in May.
Non-coking coal is mainly used in thermal plants for power generation due to its inherent lack of caking properties. The index for coking coal was at 187.1 points in May, down 32.6%. The index had peaked in June last year at 238.8 points.
The National Coal Index combines coal prices from all sales channels, including notified prices, auction prices and import prices. Established with the base year as fiscal year 2017-18, it serves as a reliable indicator of market dynamics, providing valuable insights into coal price fluctuations. There has been a sharp decline in coal auction premiums, too, pointing at sufficient coal availability.
The Indian coal industry affirms a substantial stockpile, with companies holding impressive stock. This availability ensures a stable supply for various sectors dependent on coal, significantly contributing to the overall energy security of the nation, it added. The trend witnessed in the NCI shows that a more balanced market prevails the moment.
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