MSTC Limited, on behalf of Indian Oil Corporation Limited (IOCL) has announced an e-auction for selling 70,000 MT of petroleum coke from its Paradip refinery in Odisha, scheduled on 2 Feb’19.
The salient features of this auction are enumerated as follows:
- Prospective bidders are required to submit pre-bid earnest money deposit (EMD) amount of INR 10,00,000 to participate in this e-auction irrespective of their intended bid quantity.
- Minimum bid quantity for any customer is 10,000 MT.
- Reserve price would be declared in live auction.
- Delivery Period: 2 Feb’19 – 4 Mar’19
Notably, the offered quantity in this auction is same as the last auction conducted on 2 Jan’19.
IOCL generally used to put up around 90,000 MT of pet coke for sale in their monthly auctions from Paradip refinery. The quantity reduction in this auction to 70,000 MT can be explained due to the fact that after commissioning of IOCL’s rake facility in Nov’18, about 20,000 MT is being dispatched by rail in a month.
In the last auction, the entire quantity was sold at an average price of INR 5,510/MT against a reserve price of INR 5,420/MT.
As the demand for pet coke has picked up while the domestic availability has reduced due to increased requirement for gasification by RIL and recent shutdown of its delayed coker unit (DCU), stiffer competition is expected amongst buyers in this auction.
Major cement manufacturers and steel companies from Odisha, Chhattisgarh and Jharkhand are expected to participate in this auction.
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