Spot auction conducted by South Eastern Coalfields Ltd (SECL) has managed sale of 1,524,550 t coal during Sep ’20 wherein 1,872,000 t was offered.
The auction held on 22 Sep ’20 carrying different grades of non-coking coal along with 20,000 t of semi coking coal had witnessed renewed interest from the traders and power producers, which had procured almost 80% of the material.
Coal allocation in the auction increased 24% m-o-m from 1,228,610 t in Aug ’20, besides; price realization for the sold quantity also recorded an uptick of 6% m-o-m to INR 1436/t as against INR 1349/t in Aug ’20.
| Grade | Quantity Offered | Quantity Booked | Reserve Price | Bid Price |
| SC-II | 20,000 | 3,500 | 2796 | 2796.00 |
| G5 | 55,000 | 55,000 | 2737 | 2874.98 |
| G7 | 160,000 | 134,100 | 2311 | 2311.03 |
| G8 | 105,000 | 105,000 | 1757 | 2042.01 |
| G9 | 110,000 | 52,700 | 1368 | 1714.00 |
| G11 | 500,000 | 500,000 | 1145 | 1460.27 |
| G12 | 20,000 | 20,000 | 1063 | 1493.00 |
| G13 | 245,000 | 203,000 | 980 | 1239.40 |
| G14 | 138,000 | 115,250 | 897 | 968.20 |
| G15 | 415,000 | 232,000 | 708 | 883.44 |
| G16 | 104,000 | 104,000 | 604 | 756.06 |
| Total | 1,872,000 | 1,524,550 | 1213.44 | 1436.05 |
Quantity in Metric Tonne (t) | Prices in INR/t
Key findings:
(a) Bids were received for coal offered from entire 20 lots including semi coking coal which had failed to attract a single buyer in the previous term. (Detailed source-wise results can be seen here).
(b) Low GCV coal was booked at a higher premium in comparison to the grades lying in the upper GCV bandwidth, wherein entire volume of SC-II and G7 coal was sold almost at the reserve price.
(c) G5 coal from Vijay West colliery received highest bid price of INR 2957/t, but had fetched premium of INR 220/t over the reserve price. In contrast, superior premium in range of INR 240-600/t were noted for G8 to G13 grades of coal.
(d) Power producers had majorly booked low GCV coal in the auction which was rather procured at a lessened premium of INR 140-440/t.
SECL has been the largest coal producing subsidiary of CIL, but has fallen behind MCL in terms of total output recorded during the first 5 month of FY ’21. While, excessive coal stock at mines is identified as a major obstacle in raising the coal production, the company can consider offering coal in the special forward auctions which was last held back in Jun ’20.
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