Bharat Coking Coal Ltd (BCCL), the prime coking coal producer in the country, has witnessed sales volume come down in the exclusive auction that was recently concluded on 26 Jun’20.
The auction marked specially for non-power consumer recorded booking of 63,900 t coal, which decreased 44% m-o-m compared with 113,600 t noted in the auction conducted on May’20.
Envisaged as the second phase of exclusive auction for FY21, the company had offered 100,000 t coking coal in the current round for an extended lifting period of three months (Jun-Aug’20) against the sold quantity. However, the sales failed to replicate the response that was seen in the previous term.
Incidentally, in the first phase of auction, a higher volume of 114,000 t was put forward for sale, out of which only 400 t was left unsold. Besides, the booked volume round had received substantial bids over the reserve price.
On the other hand, in the current phase of auction, barring the premium grade W-II, rest of the lot was booked at base price.
Grade-wise bids received in the current auction are elaborated below:
(a) W-II coal offered across BCCL’s two collieries had fetched bids in excess of INR 1580-1654/t over the base price of INR 4416/t. A gradual improvement was observed from the previous term, where premium of INR 1345/t was noted.
(b) A price cut of INR 179/t was not enough to incite higher sale of W-IV coal offered from Phularitand colliery, which was rather booked at reserve price. Contrarily, the same grade of coal offered from ENA colliery in the previous round had fetched premium of INR 2321/t over the reserve price of INR 3326/t.
| Source | Grade | Quantity Offered | Quantity Booked | Reserve Price | Avg Bid Price |
| Bhowrah (S) 3 Pit | W-II | 30,000 | 29,550 | 4416 | 6070 |
| Chandan | W-II | 10,000 | 10,000 | 4416 | 5996 |
| Godhur | W-III | 20,000 | 17,700 | 3312 | 3312 |
| Phularitand | W-IV | 40,000 | 6,650 | 3147 | 3147 |
Quantity in metric tonne (t)
Prices in INR/t
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