Coal volume booked under spot auction by NCL have registered a steep decline in Jun’20, where barring premium grade, rest of the lot witnessed a tepid response.
The latest auction conducted by Northern Coalfields Ltd (NCL) on 15 Jun’20, had four different grades of coal, offered across its five collieries. However, excluding G5, remaining grades were sold at bids close to the base price.
Response for lowest grade G11 was quite dull, as only 4% of the material was lifted in the auction. Besides, no bids were reported for the coal floated via rail mode of dispatch.
| Location | Mode | Grade | Quantity Offered | Price | ||
| Offer | Booked | Reserve | Average Bid | |||
| Block-B | Road | G5 | 25,000 | 25,000 | 3007 | 3158.32 |
| Krishnashila | Road | G8 | 100,000 | 36,400 | 1757 | 1757.03 |
| Khadia | Road | 50,000 | 10,970 | 1757 | 1757.06 | |
| Kakri | Road | G10 | 100,000 | 20,310 | 1228 | 1228 |
| Jhingurda | Rail | G11 | 58,410 | No Bid | 1145 | 0 |
| Jhingurda | Road | 100,000 | 6,600 | 1145 | 1145 | |
Source: CoalMint Research
Quantity in metric tonne (t)
Prices in INR/t
The company offered 433,410 t coal, of which 23% of the material amounting to 99,280 t was booked. Meanwhile the allocated quantity fell by 68% m-o-m from 314,808 t recorded in May’20, that saw a higher sale percentage of 65%.
Despite the weak sale, only sign of improvement was noted in terms of premium received, where G5 grade fetched bid of INR 151/t in excess to the reserve price. The previous highest bid of INR 108/t was recorded for G9 grade in the previous term.
Upcoming Auctions:
The company has notified that sale of 230,000 t coal comprising G5, G8 and G10 grades would be carried out in the next spot auction scheduled on 26 Jul’20.
Before that, on 19 Jun’20, a total of 1,400,000 t coal is being put forward for sale under special forward auction which is especially for power producers.
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