The proposed coal exchange will allow independent traders and firms to play on the platform since they can infuse liquidity in the market for producers and sellers through buying contracts from producers when there are no takers of coal and selling contracts to end users when contracts are not available to producers and importers.
Deepak Bhattacharyya, senior general manager at mjunction services, said coal sellers and buyers would witness a sea change in the market structure with commercial miners coming into play. The change would happen since there would be multiple sellers in place of a single dominant seller fixing price at its own prerogative. Market forces would determine pricing and this would be generally for the short term, replacing pricing for a long term, gradually bringing down long-term contracts. Prices in the exchange may vary in a span of three-four days.
