South Eastern Coalfields Ltd (SECL) has concluded its second coal sales in succession of a few days, as the miner seems to rake-up supplies to the consumers via e-auction route.
The latest round of coal sales envisaged as the spot auction was held on 28 Feb’20, a day after the special forward auction was conducted. The difference between the two being the former incorporates all forms of customers including traders while the latter only allowed participation of power producers.
However, similar to the outcome of the auction for power producers, the spot auction had received subdued response in terms of price realization, with bids for the sold quantity fetching an average price of INR 1266.23/MT as against the assessed reserve price of INR 1219.16/MT.
The auction had also yielded poor result in terms of the quantity booked, wherein approximately 23% of the total volume was left unsold. The company had offered 800,000 MT coal comprising of G6, G11, G12, G14 and G16 grades from its three collieries, of which 612,750 MT material was sold.
| Grade | Quantity | Price | |||
| Offered | Booked | Reserve | Bid | % Gain | |
| G6 | 100,000 | 67,100 | 3029 | 3029.39 | 0% |
| G11 | 200,000 | 200,000 | 1374 | 1530.67 | 11% |
| G12 | 35,000 | 13,700 | 1276 | 1276.00 | 0% |
| G14 | 45,000 | 23,600 | 1077 | 1077.00 | 0% |
| G16 | 420,000 | 308,350 | 725 | 725.08 | 0% |
| Total | 800,000 | 612,750 | 1219.16 | 1266.23 | 4% |
Source: CoalMint Reserch
Quantity in MT | Prices in INR/MT
Key takeaways from the Spot auction:
(a) The event held post conclusion of special forward e-auction had seen limited participation from the power producers. Eventually, traders emerged as the largest buyers in the spot auction amassing 418,500 MT coal.
(b) Buyer’s preference was again seen for mid GCV G11 grade of coal, whose entire quantity was booked at a decent price. Whereas, coal offered from remaining lot had noted unsold quantity left-over at the end of the auction.
(c) Price realization for G11 coal had even fetched better response in comparison to the previous auction. Incidentally, price bids for the coal in latest round of auction were seen in the range of INR 120-210/MT over the base price. Similar coal offered from the same colliery in special forward auction had fetched premiums of INR 50-70/MT.
(d) Nearly two-third of the total sold volume was booked at the base price, while remaining quantity excluding that from G11, had witnessed bids in excess of INR 10/MT over the reserve price.
Detailed result of the auction can be seen here.
SECL’s Increased Coal Supply via E-auction:
It is pertinent to note that the recent sales was the third auction conducted by SECL in Feb’20, wherein combined total of 6.6 MnT has been offered to the consumers. Incidentally, the first auction involving sales of 100,000 MT coal was held on 12 Feb’20.
The company has raised the volume in order to liquidate some of the stock at a time when it is operating at full-fledged to meet the production target for the fiscal. The next sales would be conducted on 13 Mar’20, where 1.9 MnT coal is set to be offered under the spot auction scheme.
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