NEW DELHI : With the rally in commodity stocks, Coal India Ltd, the country’s largest coal producer, too is seeing its stock prices rebound.
The stock is up more than 13% in the last two trading sessions. Strong demand and higher realizations for commodities such as steel, aluminium, cement and others bode well for demand and realizations of coal, a key input. Besides, the rebounding power sector demand in the country is also supporting coal demand.
Power demand remains crucial for Coal India’s volumes as the majority of supplies under fuel supply agreements (FSAs) are directed towards thermal power production. Earlier, low plant load factors (PLF) of power plants had meant that the volume outlook for Coal India was weak.
