The National Coal Index (NCI) has shown a significant decline of 33.8% in May 2023 at 157.7 points compared to May 2022, where it was at 238.3 points, which indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands.
Similarly, the NCI for non-coking coal stands at 147.5 points in May 2023, reflecting a decline of 34.3% compared to May 2022, while coking coal index stands at 187.1 points in May 2023, with a decline of 32.6%. The peak of NCI was observed in June 2022 when the index reached 238.8 points. However, subsequent months have experienced a decline, indicative of abundant coal availability in the Indian market.
The National Coal Index (NCI) is a price index that combines coal prices from all sales channels, including notified prices, auction prices and import prices. Established with the base year as fiscal year 2017-18, it serves as a reliable indicator of market dynamics, providing valuable insights into coal price fluctuations.
Â
 Â
Â
Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premiums confirms sufficient coal availability in the market. India’s coal industry affirms a substantial stockpile, with coal companies holding impressive stock. This availability ensures a stable supply for various sectors dependent on coal, significantly contributing to the overall energy security of the nation.
The downward trend in the NCI signifies a more balanced market, aligning supply and demand. With sufficient coal availability, the nation can not only meet the growing demand but also support its long-term energy requirements, thus building a more resilient and sustainable coal industry.
***
BY/RKP