Raw coking coal prices: BCCL approves 0.1% to 14% hikes for non-regulated sector grades

Bharat Coking Coal Ltd, a Coal India Ltd subsidiary, said the board approved higher basic prices for some raw coking coal grades. The change affects only the non-regulated sector. The increase ranges from about 0.1 per cent to 14 per cent. BCCL disclosed the decision in a stock exchange filing.

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The company said the revision followed approval at a board meeting. BCCL linked the step to pricing gaps between coal grades. It said the aim was to align prices where differences had become uneven. The company added that the adjustment applied only to selected grades for non-regulated buyers.

BCCL raw coking coal price rationalisation for non-regulated sector

In its filing, BCCL said the plan was meant to address distorted price differences across grades. It stated: "The rate revision, approved at the board meeting, is aimed at correcting disproportionate inter-grade price differentials in BCCLs raw coking coal pricing\". The company said the revised basic prices were higher than earlier levels.

BCCL said the covered products included steel grades I and II, and direct feed. It also covered PCC Washery Grades W-II to W-VI. In addition, HVMC Washery Grades W-I to W-VI were included. BCCL said the scope was limited to the non-regulated sector only.

Impact of BCCL raw coking coal price changes on steel makers

Industry experts said the adjustment may slightly raise costs for domestic coking coal buyers. These buyers include steel manufacturers and other customers in the non-regulated market. Experts said the rise was limited to specific raw grades. They added that the near-term effect was likely modest, not widespread.

BCCL said: \"With a view to correct disproportionate inter-grade price differentials, the revision covers steel grades I and II, direct feed, PCC Washery Grades W-II to W-VI and HVMC Washery Grades W-I to W-VI for non-regulated Sector only.\" The filing also said prices rose by about 0.1 per cent to 14 per cent.

BCCL role in domestic raw coking coal supply

BCCL supports India’s steel supply chain through raw coking coal output. The company operates open-cast and underground mines in Jharkhand and West Bengal. BCCL has a major presence in the Jharia Coalfield. The company’s mining network helps meet domestic demand for coking coal.

The board-approved price rationalisation applies to a set of raw coking coal grades in the non-regulated sector. BCCL said the purpose was to fix uneven price gaps between grades. Experts said buyers could see slightly higher input costs. The filing indicated the increase stayed within a 0.1 per cent to 14 per cent range.

With inputs from PTI