CCL Concludes Special Spot Auction for Apr’20

Central Coalfields Ltd (CCL) has witnessed tepid demand for coal sales envisaged under special spot auction which offers a longer validity of lifting period in comparison to the other auction schemes.

Out of the 4,600,000 MT coal put forward for auction held on 21 Apr’20, the company had managed a mere 3% sale which amounts to 146,250 MT. Besides, due to poor market conditions, the entire sold quantity was booked close to the reserve price.

In order to provide cheaper coal in the e-auctions, CCL had waived-off the upper cap on coal prices, thus the reserve price was kept same as the applied notified price. However, no urgency was seen amongst the buyers to procure coal despite the relaxation.

Coking Coal Sales:

Identical volume of W4 and W5 grade of coking coal were offered from Rajrappa and Kaargali-II colliery.

The quantity sold under W4 grade had seen bids same as the reserve price. In contrast, higher volume were booked under W5 grade of coal, which had also fetched an incremental rise in bid price against the reserve price of INR 2261/MT, assessed at INR 2267.67/MT.

Non-Coking Coal Sales:

The company had offered G11 and G12 grade of non-coking coal from its 5 collieries. Although the entire lot was booked at the reserve price, but coal of G11 specification put forward from Magadh colliery had recorded better yield in sales contrary to other sources.

No bids were recorded for washed coal offered from Bachra colliery, which was put up for sale at a floor price of INR 2247/MT.

Source: CoalMint Research
Quantity in MT
Prices in INR/MT

Going forward, the company has framed a road-map to sale 20 MnT coal via e-auctions during the first quarter of FY21 to liquidate the excessive stock, which was attributed as a hindrance to production growth in the previous fiscal.