Coal prices to remain high in the monsoon quarter: ICRA

Prices of domestic coal will continue to remain high in the current quarter, given the supply challenges of the fuel during the monsoon, rating agency ICRA said last week. The domestic e-auction premium on coal increased by over 400 per cent in May, adversely impacting the cost structure and margins base metal companies. An ICRA statement said power costs had risen substantially for domestic base metal companies owing to lower availability of linkage coal to non-power sectors and elevated coal prices in both international and domestic markets. Metal prices, it said, will remain under pressure in the near term owing to weakening global demand. See also: Uttar Pradesh to import coal for power Indonesian Co lowest bidder in CIL coal import tender