KOLKATA | Dec 17, 2017: Companies including power generators that depend heavily on e-auction coal should brace for a further rise in costs as international prices are slated to exert upward pressure on domestic spot market for the next three months before subsiding, experts have predicted.

In the domestic market, spot e-auction prices have already crossed Rs 1,650 per tonne at recent auctions and analysts believe it will cross Rs 1,700 by early January beyond which it will rise further over the next three months before softening.

Between now and March next year, Coal India is likely to offer an additional 30 million tonnes of coal, ending the financial year with a total of 100 million tonnes.

"Despite a likely revival of production by Coal India in the second half of the fiscal, outlook on domestic coal prices in the near term remains positive," said Jayanta Roy, senior vice-president and group head-corporate sector ratings at ICRA.

"Incremental demand from sponge iron players on the back of better industry prospects would support coal prices in the e-auction market." Deepak Kanna, managing director at S&P Global Platts, said rains in Indonesia continue to impact international supply and vessel loading schedules amid winter-restocking demand from China.

It has been keeping prices on the upward trend despite the approaching year-end.

(Source: https://economictimes.indiatimes.com/)