Coal volume sold under e-auctions has further receded during the month, where partial resumption of industrial activities failed to revive considerable demand from the customers.
CIL had managed to sale 4.83 MnT coal in various auction schemes for May’20, which dropped 47% compared with 9.11 MnT in Apr’20.
After witnessing weak sales in the previous month’s auction, coal volume put forward in May’20 was lowered by 27% M-o-M to 30.36 MnT. However, in the difficult market conditions where consumers have requested to defer the contracted coal supplies under FSA, quantity offered in e-auctions had also received dull response.
The tepid demand had taken a toll on profit earned in the auction too, where the booking value had fetched a mere 7% increase over the notified value. In contrast, almost three-fourth of the offered coal was procured by the customers while fetching a premium of 49% in the auctions held in May’19.
Results of various e-auction schemes:
In view of the high inventory levels available at power stations, quantity offered for exclusive e-auctions was raised by two-folds to 14.2 MnT during May’20, which is envisaged specifically for the non-power consumers. On the other hand, volume offered in other auction schemes was slashed during the month.
However, CIL’s pursue to tap non-power sectors for liquidating its excess stock was not duly met, as only 15% of the total volume was sold in the exclusive auction.
Response in special forward auction for power producers was more subdued, where 12% of the quantity was booked at almost nil premiums over the notified value.
Spot e-auction witnessed better sales by fetching a premium of 11% over the notified coal value. Moreover, it had also received highest sale percentage of 29% among the various auction schemes.
While, coal allocation in spot, special forward and exclusive auction schemes had decreased M-o-M, sales under special spot auction recorded significant growth in May’20 where 0.38 MnT coal was sold against 0.15 MnT in Apr’20.
| Auction | Exclusive | Special Forward | Spot | Special Spot | Total |
| Quantity Offered | 14.20 | 8.56 | 4.11 | 3.50 | 30.36 |
| Quantity Allocated | 2.19 | 1.06 | 1.20 | 0.38 | 4.83 |
| Total Notified Value | 261.9 | 83.18 | 250.14 | 78.99 | 674.21 |
| Total Booking Value | 276.4 | 83.18 | 277.54 | 84.21 | 721.33 |
| Increase over Notified Value | 6% | 0% | 11% | 7% | 7% |
Quantity in MnT
Value in INR Crores
Coal to NRS under import substitution:
Gradual increase in power consumption marked an uptick in CIL’s off-take figures for May’20, but, actual revival of sales in e-auctions is only possible once full fledged industrial operations are resumed.
With adequate coal stock availability, CIL has urged the non-regulated sector (NRS) to increase domestic coal consumption instead of imported coal. The miner has also stated that it would meet their requirement against import substitution by offering adequate quantity under spot and exclusive auctions, which can be initiated upon request.
Leave a Reply