India’s Informal Coal Sector Boosts Stockpiles Amid Price Surge
Key Highlights
India’s informal coal sector increases stockpiles as prices surge 10-15% due to international pressures. Smaller players mitigate volatility and ensure supply.
India’s informal coal sector is ramping up its coal reserves in response to rising international coal prices, which have pushed free market rates 10-15% higher than usual for this time of year, according to coal traders.
A March 23 report from S&P Global Energy noted a significant increase in the Platts CFR India 4,200 kcal/kg GAR, climbing from $67 per metric ton on February 27 to $77.40 per metric ton by March 20. This surge is attributed to heightened buying activity across Asia and a generally stronger energy market sentiment.
The price increase has particularly affected smaller, informal sector players who are now stocking up to mitigate future price volatility and ensure supply continuity.