The National Coal Index (Provisional) has reported a notable decline of 3.48% in June 2024, with the index at 142.13 points compared to 147.25 points in June 2023. This decrease indicates a sufficient coal supply in the market to meet rising demands.
National Coal Index Overview
The NCI, which combines coal prices from various sales channels—including Notified Prices, Auction Prices, and Import Prices—tracks both coking and non-coking coal of different grades. Established with a base year of FY 2017-18, the NCI offers a comprehensive view of price trends and market dynamics.
Auction Premium and Production Growth
The reduction in the premium for coal auctions further confirms ample coal availability. Additionally, coal production in India surged by 14.58% in June 2024 compared to the previous year, ensuring a stable supply for sectors dependent on coal and contributing significantly to the nation’s energy security.
Market Impact
The downward trend in the NCI highlights a balanced market with harmonized supply and demand. This stability supports the nation’s long-term energy needs, promoting a resilient and sustainable coal industry and setting the stage for a prosperous future.
