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.