Indian Oil Corporation Ltd’s (IOCL) latest Petroleum Coke e-auction, conducted by MSTC Ltd., failed to sell any quantity out of 90,000 MT offered from its Paradip refinery in Odisha, scheduled on 30 Nov’18.
Strikingly, this is for the first time when no bid was received in IOCL’s pet coke auction from Paradip.
It is understood from the major potential bidders that the reserve price was higher than the expected price. They claim that this is mainly due to the reason that pet coke prices have dropped further in the international market.
Notably, IOCL’s last auction was conducted on 14 Nov’18 for 60,000 MT, wherein the entire quantity offered was sold at a reserve price of INR 5870/MT.
IOCL had reduced its reserve price for yesterday’s auction by INR 200/MT to INR 5,670/MT over the last auction price of INR 5,870/MT. In spite of this decrease in reserve price, the major customers refrained from showing any buying interest.
Supply from this auction will continue for another two weeks, as the delivery period was from 15 Nov’18 to 14 Dec’18. It is expected that IOC may come out with fresh auction in near future.
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