National coal index drops 3.48 per cent in June 2024 amid rising production and ample supply

New Delhi [India], August 16 (ANI): The Ministry of Coal announced that the National Coal Index (NCI) showed a decline of 3.48 per cent in June 2024, registering 142.13 points compared to 147.25 points in the same period last year, on Friday.

According to the Ministry of Coal, this drop indicates a stable and sufficient coal supply in the market, aligning with growing demands from key sectors.

The National Coal Index (NCI) is a composite price index that reflects coal prices across various sales channels, including Notified Prices, Auction Prices, and Import Prices.

It tracks the prices of both coking and non-coking coal of different grades, catering to both regulated sectors like power and fertilizer and non-regulated industries. With FY 2017-18 as the base year, the NCI acts as a key indicator of market trends, offering valuable insights into price movements.

The premium on coal auctions serves as a barometer for industry sentiment, and the recent sharp drop in auction premiums points to an ample coal supply in the market.

The country’s coal production witnessed robust growth of 14.58 per cent in June 2024 compared to the same period last year, ensuring a stable supply to critical sectors dependent on coal, thus playing a crucial role in maintaining energy security.

The declining trend in the NCI reflects a more balanced market, aligning supply and demand more effectively. With adequate coal availability, the nation is well-positioned to meet growing demand while supporting long-term energy needs, strengthening a resilient and sustainable coal industry and paving the way for a more prosperous future.