Thermal coal prices go up across the globe

In India, consumers are turning from imported coal to domestic production

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Global coal prices hiked almost 20 percent, or around USD 10 per ton, since the end of June, reports The India Times.

A drastic cut in production by China and Indonesia is driving prices up. China decided to cut its annual production from 4 billion to 3.6 billion tons, while Indonesia opted to downsize output by 50 million tons after muted demand last year.

In India, Coal India is now able to sell its output to clients that usually relied on imports, as a wider gap appears between domestic and importation prices. China's cut in production is roughly equivalent to 80 percent of Coal India's total production.