National Coal Index Reflects Market Stability with Sufficient Coal Supply

The National Coal Index (NCI) fell by 3.48% in June 2024, indicating sufficient market coal availability to meet demands. The NCI tracks coal prices across various channels and sectors. This price drop signifies stable supply, enhancing the nation's long-term energy security and promoting a sustainable coal industry.

The National Coal Index (NCI) saw a 3.48% decline, dropping to 142.13 points in June 2024, indicating robust coal availability in the market. This development marks a decrease from 147.25 points recorded in June 2023, according to a statement from the coal ministry on Friday.

The decline in NCI highlights sufficient coal supplies meeting the growing demands. As a price index, NCI combines coal prices from various channels, including notified prices, auction prices, and import prices, encompassing both coking and non-coking coal of different grades used in regulated and non-regulated sectors.

Introduced with the base year of fiscal 2017-18, NCI is a pivotal market indicator, offering insights into price trends. Additionally, the reduction in coal auction premiums underscores market sufficiency. With a 14.58% increase in coal production in June this year, the nation ensures dependable supply for sectors reliant on coal, solidifying energy security while aligning supply and demand dynamics for a resilient future.

(With inputs from agencies.)