Coal India auction to miss spark on low power demand Q4 of FY18

After 76% rise in Q3, prices may fall in Q4

After a 76 per cent increase over the average notified price in e-auctions during October-December last year, Coal India might see auction prices falling as demand from the power sector is expected to remain muted in the fourth quarter (Q4) of the current financial year.

Analysts are of the view that power demand usually declines in the winters and with Coal India stepping up its sales, the country’s power generators would be returning to near-normalcy latest by mid-February.

“In turn, this is going to affect demand from the power sector in the e-auctions,” an analyst from Motilal Oswal said.

In November 2017, despatches