India allows captive coal mines to sell 50% of output to market

sxcoal.com International,  Thermal Coal 2021-10-09 15:43:41

India's captive coal mines, which produce coal for their own downstream companies, are allowed to sell half of their annual output in the open market, Indian government said on October 5.


"The additional supply of coal from captive mines will help ease the coal shortage at power plants and replace some of the imported coal as well," the coal ministry said in an announcement.


Coal produced by India's captive coal mines has been used only for their use. Previously, the Indian government restricted the use of this kind of coal for specific purposes and not allowed miners to sell it in the open market.


Domestic coal-fired power plants have been facing severe coal shortages for recent months as India's economy has grown rapidly and electricity demand has surged, with stocks falling to multi-year lows.


The shortages have stoked fears of potential outages in parts of India, where 70% of power is generated from coal.


Out of India's 135 coal plants, 108 were facing critically low stocks, with 28 of them down to just one day's worth of supply, according to power ministry data released on October 6.


As of October 7, the total coal inventories across coal-fired power plants in the country dropped to 7.31 million tonnes, only enough to cover four days of consumption, data from the Central Electricity Authority (CEA) showed.


India's coal imports dropped to 14.37 million tonnes in September, down almost 6% from a month ago, data compiled by local information agency CoalMint. The downward trend has lasted consecutively since May, forming an accumulative decline of almost 35% from May to September.


CoalMint believed the skyrocketing prices were most responsible for the setback in India's coal imports.


As of October 8, Indonesian 5,500 Kcal/kg NAR thermal coal was assessed at $188/t FOB, more than doubling the level at the beginning of this month. The South African 5,500 Kcal/kg NAR thermal coal soared more than 140% to $176/t over the same period, while Australian 5,500 Kcal/kg NAR stood at $125/t in early October, a 127% rise in nine months.


(Writing by Alex Guo  Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editor's Pick

1 China's coking coal prices stabilize as demand cools approaching holiday 2022-01-24

China's coking coal prices leveled off at main production areas, as most coke producers completed winter restocking and slowed down purchases approaching the Lunar New Year holiday. On Ja

2 Coal truck freights edge higher at N China production areas 2022-01-24

Truck freight rates for coal transport edged up recently in key production areas in North China, driven by increased buying interest from inland utilities, cement and chemical plants. Sporadic flare-u

3 Weekly China thermal coal market analysis and forecast 2022-01-24

China's domestic thermal coal prices rose notably again last week, fueled by the ongoing shortage of high-CV cargoes at northern ports. Increased demand due to the upcoming Winter Olympics also drove

4 Weekly China met. coke market analysis and forecast 2022-01-24

China's metallurgical coke market saw an impasse between coking plants and steel mills over the fourth round of coke price hike last week. But a moderate improvement in sentiment was observed late las

5 Top Chinese coal provinces post large output growth in Dec to ensure supply 2022-01-24

China's raw coal production hit historical high in December, with top producing provinces contributing most of the increase. The country produced 384.67 million tonnes of raw coal in Dece

6 Will snowfall and the Spring Festival curb thermal coal price rise? 2022-01-24

China's thermal coal prices embraced a round of sustained rebounds last week on the back of active replenishment from downstream buyers ahead of the Spring Festival holiday. Will the snowfall and the

7 China Dec anthracite imports slump 68.81% on yr, GAC 2022-01-24

China imported 507,300 tonnes of anthracite in December, slumping 68.81% from a year ago and 54.63% from the preceding month, showed data from the General Administration of Customs on January 24. 

8 China's coking coal imports surge 109.73% on yr in Dec, GAC 2022-01-24

China's coking coal imports surged 109.73% year on year but fell 3.28% month on month to 7.49 million tonnes in December, customs data showed on January 24. The import value

9 China Coal Daily Track (Jan 24) 2022-01-24

Thermal Coal Production area Thermal coal supply continued to contract alongside some mines' Spring Festival holiday leave, while mines' coal stock started to accumulate due to snow-incurred sh

10 Weekly China coking coal market analysis and forecast 2022-01-24

China's coking coal market mainly remained stable during the past week given weak supply and demand, while some regions saw both downtrends and uptrends. Higher offers were mainly for pre

Most Read Articles

1 Indonesian thermal coal prices may jump sharply once export ban eases 2022-01-19

Indonesian thermal coal prices have been stable for weeks since the country enacted a ban on coal exports for the whole month of January, but the prices are likely to jump strongly once the ban is lif

2 China's coal output hits record in 2021 despite escalated checks 2022-01-18

China's coal production hits record highs in December and in the full year of 2021, as the government continued to encourage miners to ramp up output to ensure energy supply, which has greatly offset

3 China Shenhua 2021 commercial coal output up 5.3% on yr, sales up 8% 2022-01-21

China Shenhua Energy Co., Ltd., the country's largest listed coal producer, reported a 5.3% year-on-year rise in saleable coal production in the full year of 2021 while its coal sales in the year also

4 China's met coke market awaits clearer direction as steel output curbs loom 2022-01-19

China's metallurgical coke market is currently directionless, as looming restrictions on steel production add uncertainty to the fourth round of coke price increase. Views from participan

5 Coal stockpiles falling sharply at N China ports 2022-01-20

Coal inventories of northern China's transfer ports have been falling rapidly since late December. This trend could be hardly changed in the near term as far as the current situation is concerned.

6 Indonesia lifts coal export ban on 139 coal companies 2022-01-21

Indonesia has terminated the coal export ban in advance for 139 mining companies, which account for the most of the country's major miners, according to a government circular on January 20.

7 Some Indonesian coal producers resume vessel loading for export, sources 2022-01-18

Some more Indonesian miners have reportedly restarted loading vessels to ship coal abroad, following the energy ministry's approval for seven mining groups to release some 1.4 million tonnes of coal i

8 High seaborne prices to drive India's coal production 2022-01-18

High seaborne prices will prompt India to raise domestic coal supply and limit imports, Reuters reported. All coal needed for India's grid-connected power plants is scheduled to be provid

9 Coal output in China's CSEs breaks 1 Bt for the 1st time in 2021 2022-01-19

China's central state-owned enterprises produced over 1 billion tonnes of coal in 2021 for the first time in history, Peng Huagang, Secretary General of the State-owned Assets Supervision and Administ

10 China's N port coal stocks fall rapidly; trader offers firm 2022-01-18

Thermal coal stockpiles have declined rapidly at China's northern ports as mine-mouth prices are running high and keeping portside traders from buying. Coal stockpiles at the three large