Since April 2015, average prices fetched by Coal India from local auctions started to fall and in the subsequent 12 months, prices have dipped by about 39 per cent from Rs 2,184 per tonne in the quarter ended June 2015 to Rs 1,337 per tonne during the quarter ended September 2016.
In the December quarter, average realisations from e-auctions rose to Rs 1,546 per tonne, 17 per cent higher than the preceding three months, reversing a series of declines that had begun in April 2015.
Analysts expect prices to remain firm and help Coal India improve its financial performance because of output moderation by a large regional exporter from Indonesia. Coal importer SPIML said international prices are expected to stay stable for the next few months. Imports from Indonesia into India and continued demand from China are key attributes in reversing price declines now - and this trend will likely continue.