Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has concluded online auctions of RPC (Raw Petroleum Coke) for outside-state consumers in Assam and Gujarat.
The auctions were conducted on Tuesday March 24 and the detailed results are enumerated as follows:
| Refinery | Reserve Price
(INR/MT) |
Quantity Offered Within State
(MT) |
Quantity Sold Within State
(MT) |
Date of Auction Within State | Quantity Offered Outside State
(MT) |
Quantity Sold Outside State
(MT) |
| Digboi Refinery | 13,720 | 5,000 | 0 | 21st Mar’20 | 5,000 | 5,000 |
| Koyali Refinery (Gr.A) | 12,780 | 25,000 | 0 | 21st Mar’20 | 25,000 | 0 |
| TOTAL | 30,000 | 0 | 30,000 | 25,000 |
Evidently, the auction at Digboi refinery witnessed impressive response wherein the entire offered quantity of 5,000 MT was sold out. Market participants indicated that consumers from West Bengal and Bihar placed their bids and received the allocations.
Such an overwhelming response in outside-state auction is remarkable considering the fact that there has been a sharp increase in reserve price by INR 2,370/MT from INR 11,350/MT of the last auction conducted on December 27, 2019.
However, there has been nil response in the auction at Koyali refinery. Market participants indicated that the main reason for this is due to the stupendous increase in reserve price by INR 1,400/MT from INR 11,380/MT of the last auction conducted on February 10, 2020.
In the previous round of IOC’s pet coke auction ex-Digboi, entire quantity of 6,900 MT was sold out at a reserve price of INR 11,350/MT. Similarly, in the previous round of auction at Koyali, 35,000 MT was put on auction, out of which 4,900MT was sold within state while 6,000 MT was sold outside state. Thus, a total quantity of 10,900MT was sold out in the auction at a reserve price of INR 11,380/MT.
The delivery period is for 45 days, i.e. from March 25 to May 8, 2020. The successful bidders are required to complete the required formalities, like submission of security deposit, etc. and uplift their allotted quantities within the due date.
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