Kolkata-based Indian state-controlled coal mining company Coal India Limited (CIL) will not increase its domestic price of coking coal over the next few months, despite the rising trend of international prices, to ease pressures on local steel mills dependant on imported raw materials, a CIL official said on Thursday, October 20.
The official said that not only would CIL not hike its domestic price of coking coal but it would also step up supplies to local steel mills and offer an import substitution option to these steel producers.
Most of the higher supplies of coking coal to steel companies would be through forward auctions to be conducted by CIL over the next three to four months of the current fiscal year, the official said.
In the current forward e-auction, which got underway yesterday (Wednesday), CIL has put on offer a volume of 20 million metric tons, the official said.
Depending on the response to the current auction, CIL has the ability to progressively increase volumes on offer and such volumes would be dependent on off-take at the on-going auction, he added.