Bharat Coking Coal Ltd (BCCL), the prime coking coal producer in the country, has reported subdued sales in the recently concluded spot coal e-auction. The company had engaged service provider M Junction to carry-out the auction on its behalf, which was held on 25 Jan’20.
BCCL had scheduled sale of 62,000 MT coal in the said auction, which included 12,000 MT washed coal envisaged from its Moondih washery. Despite recording sale of 96% of the quantity being put forward, the company had received moderate bids in the auction.
Apparently, the average bid price for coal in the auction was marked at INR 5131.58/MT, which had fetched a premium of 11% over the average reserve price of INR 4619.44/MT.
Auction Result from BCCL’s Spot Coal Sales
| Grade | Type | Quantity | Price | ||
| Offered | Booked | Reserve | Bid | ||
| W-III | Coal | 45,000 | 42,400 | 5015 | 5479.46 |
| W-IV | Coal | 3,000 | 3,000 | 4784 | 5334.33 |
| G7 | Coal | 2,000 | 2,000 | 3485 | 4148.75 |
| W-III | Washed Coal | 12,000 | 12,000 | 3284 | 4015.54 |
| Total | 62,000 | 59,400 | 4619.44 | 5131.58 | |
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
Majority of the coal quantity offered in the auction was of coking grade, specifically pertaining to W-III specification. However, price bids for this particular grade were quite low in comparison to the remaining of the lot, which had fetched a premium of 9% over the floor price of INR 5015/MT.
Sale of W-III grade of coal offered from AKWM, NT-ST Jeenagora and Bastacolla had garnered bid in excess of INR 650-850/MT over the set reserve price, while rest of the bids were seen below INR 400/MT.
Incidentally, W-III coal offered from Dhansar and Kuya OCP had witnessed unsold quantity left over at the end of the auction, while receiving bids only in excess of INR 20/MT over the floor price. Detailed result of the auction can be seen here.
W-IV grade of coal offered from Tetulmari was sold at a premium of 12% over the base price at INR 5334.33/MT. Whereas, the single lot of non-coking coal of G7 grade received average bid price of INR 4148.75/MT as against the reserve price of INR 3485/MT.
Entire quantity of 12,000 MT washed coal pertaining to W-III grade was sold at an impressive premium of 22% at INR 4015.54/MT. The specified lot had garnered bids in excess of INR 710-800/MT over the base price.
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