Coal India’s operating arm in Maharashtra, Western Coalfields Ltd (WCL), witnessed sale of 12% of the coal quantity offered in spot auction which concluded on 16 Jun’20. The company put forward 800,000 t coal for sale out of which 93,750 t was booked.
In terms of volume, the allocated quantity in this auction increased by 23% m-o-m against 76,280 t in May’20 auction, in line with the significant rise (by 356% from previous term) in total quantity offered for sale.
However, in terms of percentage allocation, the current auction turned out to be dull affair for the company as against 12% sales this term, about 43% of the total quantity offered was sold in May’20.
Key inferences from the auction:
(a) Coal in recent spot sales was put across in 20 lots, that include a combination of non-coking coal grades along with 20,000 t of WG-4 coking coal grade.(Detailed source-wise list can be seen here).
(b) Apart from un-blended non-coking coal (G8, G9, and G10) from selective collieries, remaining material was sold almost at the base price, with G11 grade being an exception for which no bids were recorded. Altogether, 43% of the total material from six different collieries was left unsold in the auction.
(c) Highest bid of INR 660/t over the reserve price was recorded for G10 grade of coal offered from Mohan 9/10 colliery, followed by premium of INR 554/t received for G9 coal from Mana incline.
Notably, the highest premium fetched in the previous month’s auction was INR 716/t for G10G11 mix grade.
(d) The sole lot of coking coal from Tandsi colliery also failed to gain adequate response, as only 5% of the total quantity was booked at an average bid price of INR 3353.47/t which was almost equal to the base price.
Upcoming auction:
WCL has notified that it will conduct another round of spot auction on 30 Jun’20, where 249,200 t coal would be put up for sale.
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