Spot coal prices hit record on high demand, hoarding

Local coal prices discovered under the spot e-auctions are at a record high, close to international levels, due to increased demand from power plants ahead of summer and suspected hoarding by traders in anticipation of a shortage due to the Russia-Ukraine war.

Power producers said this would substantially raise power tariffs, particularly the spot prices, while coal companies said the coal being bought is meant for merchant plants, which sell power on the exchange and account for only a small portion of India’s total electricity generation.