Bharat Coking Coal shares rose 5.5% on October 14 after the company raised prices of select raw coking coal grades. The board approved hikes ranging from 0.1% to 14% to correct price differentials. This move impacts the non-regulated sector, though experts said the immediate effect on steel manufacturers remains modest.
Coal India Ltd's arm BCCL shares rose 5.5% on October 14 a day after the company said its board has approved rationalisation of basic prices of certain grades of raw coking coal for the non-regulated sector with rate hikes ranging from 0.1% to 14%.
The rate revision, approved at the board meeting, is aimed at correcting "disproportionate inter-grade price differentials" in BCCL's raw coking coal pricing, Bharat Coking Coal Ltd said in a stock exchange filing.
At 11:05 am on October 14, BCCL shares were trading 5.5% higher at Rs 32.87 apiece.
"With a view to correct disproportionate inter-grade price differentials, the revision covers steel grades (I and II), direct feed, PCC Washery Grades (W-II to W-VI) and HVMC Washery Grades (W-I to W-VI) for non-regulated Sector only. The basic prices of different grades have been increased by approximately 0.1% to 14% over the existing prices," the filing said.
According to industry experts, the move will marginally increase the cost of domestic coking coal for steel manufacturers and other non-regulated buyers.
But since the increase is 0.1-14% and applies only to selected raw grades, the immediate impact is likely to be modest rather than broad-based, they told PTI.
BCCL plays a pivotal role in fuelling the nation's steel sector. It manages an extensive network of open-cast and underground mines across Jharkhand and West Bengal, with a particular focus on the Jharia Coalfield.