Coal India Ltd’s price realisation in e-auction has attained new high for the FY19, riding on lower allocation made in the sales volume.
As per the quarterly report provided by CIL, the coal major has reported highest price realisation in e-auction sales for Q3 FY18 (Oct’18-Dec’18) since the beginning of FY17, while respective sales volume has declined to its lowest in the same time-frame.
CIL’s E-Auction fetched price realisation of INR 2847/MT in Q3 FY19, rising 42% Y-o-Y from INR 1998/MT in Q3 FY18, which was also 10% higher from the previous quarter.
The coal volume offered in e-auctions was lowered to augment the supplies under FSA (Fuel Supply Agreement).
In order to revive the coal stock position at the power plants, more coal volume was supplied to the power station having FSA at the expense of coal offered in CIL’s various e-auctions.
As a matter of fact, SECL, the largest coal producing subsidiary of CIL, had skipped its monthly spot e-auction two times in the Q3 FY19, with the sole auction conducted in Dec’18.
Eventually CIL’s coal volume in e-auction had dropped 44% Y-o-Y to 14.65 MnT in Q3 FY19 compared with 26.37 MnT in the year-ago quarter period, which was also 14% lower Q-o-Q from 17.68 MnT in Q2 FY19.
Coal volume supplied under FSA rose to the highest since FY17, marked at 135.82 MnT in Q3 FY19, fetching an average price realisation of INR 1334/MT.
The improvement in coal stock at power plants as seen during Feb’19, is likely to soften the price realisation with more coal expected to be offered in e-auctions.
Sales of Washed Coal in Q3 FY19:
Volume of washed coal supplied in the third quarter increased 20% Q-o-Q to 2.92 MnT.
Out of the total, quantity of washed coking coal was 0.34 MnT, while washed non-coking coal was recorded at 2.58 MnT, up 22% Q-o-Q from 2.11 MnT in Q2 FY19.
Average price realisation fetched for washed coking and non-coking coal was INR 6735/MT and INR 2357/MT respectively.
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