Coal India shares witnessed a decline in prices as global coal prices hit a two year low at $130 per tonne. Coal India opened at Rs 229.70 per share on the National Stock Exchange on July 18 after closing at Rs 230.20 on July 17. The stock opened at Rs 229.10 per share on the Bombay Stock Exchange after closing at Rs 230.15 on July 17.
A transition from coal to gas in Europe on the back of cheaper gas prices and the increase in coal supply from India, Indonesia, and Australia are the main causes of coal hitting a two-year low. Countries such as Australia have increased their exports by an estimated 7.8 percent, while Indonesia's exports have also grown by an estimated 2.4 percent.
Earlier in 2022, coal prices hit an all-time high in September reaching a price of $457 a tonne. The price of coal has declined in 2023, starting from $400 per tonne in the month of January, reaching $125 a tonne in June, to finally hitting a two-year low price of $130 per tonne in July.
Coal production
One third of the world's energy generation demand is met using coal. Asia's imports of coal have increased by an estimated 2.3 percent to 852 million tonnes.
India's coal production for FY23 stood at 893.08 million tonnes. The Ministry of Coal has set a 1,012-million tonne target for FY24.
With plans to export fossil fuel, the Centre is devising a strategy to tap foreign markets for Indian coal as domestic production sets new records, Union minister of parliamentary affairs, coal and mines, Pralhad Joshi told Mint in an interview earlier in July. The Union minister also claimed that India already exports around 2 million tonnes of coal to its neighbours.
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