National Coal Index declines by 4.75 percent

The downward trend of the NCI signifies a more balanced market, aligning supply and demand dynamics.

The National Coal Index (Provisional) saw a significant decline of 4.75 percent in December 2023, falling to 155.44 points from 163.19 points in December 2022. This notable decrease suggests ample coal availability in the market to meet escalating demands. The National Coal Index (NCI) functions as a price index amalgamating coal prices from all sales channels, including Notified Prices, Auction Prices, and Import Prices. It encompasses prices of both coking and non-coking coal of various grades traded in both regulated (power and fertiliser) and non-regulated sectors. Established with FY 2017-18 as the base year, the NCI serves as a reliable indicator of market dynamics, offering valuable insights into price fluctuations.

The peak of NCI occurred in June 2022, reaching 238.83 points, after which subsequent months witnessed a decline, indicating ample coal availability in the Indian market. Furthermore, the premium on coal auctions reflects industry sentiment, and the sharp decrease in coal auction premium confirms sufficient coal availability in the market. The impressive 10.74 percent growth in the country’s coal production during December 2023, compared to the same period last year, ensures a stable supply for various sectors dependent on coal, significantly enhancing the nation’s energy security.

The downward trend of the NCI signifies a more balanced market, aligning supply and demand dynamics. With abundant coal availability, the nation can not only meet growing demands but also support its long-term energy needs, thereby strengthening a more resilient and sustainable coal industry and fostering a prosperous future for the nation.