Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited, has increased the basic prices of selected grades of raw coking coal by up to 14 per cent for consumers in the non-regulated sector. The revised prices came into effect on October 14, following approval by the company’s Board of Directors on October 13.
The price increase ranges from approximately 0.1 per cent to 14 per cent, depending on the coal grade. BCCL said the revision was intended to correct disproportionate price differences between different grades of raw coking coal.
The decision covers Steel Grades I and II, Direct Feed coal, Prime Coking Coal (PCC) Washery Grades W-II to W-VI, and High Volatile Medium Coking (HVMC) Washery Grades W-I to W-VI.
Which Coking Coal Grades Will Cost More?
The revised prices apply to specified grades supplied to the non-regulated sector. The increase is not a blanket revision covering BCCL’s entire coal portfolio.
The revised basic prices notified for key grades include:
- Steel Grade I: ₹7,000 per tonne
- Steel Grade II: ₹6,500 per tonne
- Direct Feed Coal: ₹6,750 per tonne
- PCC Washery Grade W-II: ₹4,480 per tonne
- PCC Washery Grade W-III: ₹3,700 per tonne
- PCC Washery Grade W-IV: ₹3,350 per tonne
- PCC Washery Grade W-V: ₹2,960 per tonne
- PCC Washery Grade W-VI: ₹2,700 per tonne
BCCL has also revised the basic prices of the specified HVMC washery grades. Applicable additional charges, statutory levies and taxes will be payable over and above the basic prices.
Steel Industry to Feel the Impact
Coking coal is a critical raw material for steel production, particularly in the blast furnace route. The price revision could raise procurement costs for steelmakers and other industrial consumers purchasing the affected grades from BCCL.
The actual impact will vary according to the grades purchased, procurement volumes and individual companies’ sourcing arrangements. The increase of up to 14 per cent applies to selected grades, while other grades have seen smaller adjustments.
For steel producers operating with tight margins, even a targeted increase in domestic raw material costs could add to cost pressures. The extent to which buyers can absorb or pass on the increase will depend on market conditions and their overall cost structures.
BCCL Cites Price Rationalisation
BCCL has justified the revision as a measure to correct disproportionate price differentials between grades. The board approved the proposal at its meeting held on October 13 at the company’s headquarters in Dhanbad.
The latest decision represents an adjustment to the basic prices of specified raw coking coal grades rather than a uniform increase across all BCCL products and customer categories.
BCCL, a Miniratna public sector enterprise under Coal India Limited, is an important domestic supplier of coking coal to the steel industry. Its operations are concentrated primarily in the Jharia coalfield of Jharkhand, a major coking coal-producing region.
