Bid premiums fell for the fourth time in a row in the spot coal e-auction held by CIL subsidiary South Eastern Coalfields Ltd. (SECL) on 28 November, 2022. Premiums had surged 495% in May but have been falling since in every auction conducted.
In the latest auction, the bid premium over the notified price hovered around 225%. In contrast, the figure was 275% in October.
SECL had offered 1.87 million tonnes (mnt) of non-coking coal, the highest quantity in CY22, of which the entire quantity was booked. The coal grades were G4, G9, G10, G11, and G15. In particular, G15 accounted for 72% of the total offering.
Despite an increase in the November auction volume, the number of grades offered was reduced; higher CV grades from G5 to G8 were not put on the bloc, while G4 grade coal quantity was insignificant.
Auction prices fall
Prices saw a correction at SECL’s auction along with production and dispatches showing an improvement after the monsoons. SECL offered 3.29 mnt in October-November as against 3.5 mnt n April- September.
Grade-wise comparison
All the grades witnessed a fall in bid prices but a steep fall was seen for G15 grade. G15 prices fell 40% from the October auction amid bulk offering of 1.35 mnt.
Meanwhile, G9 and G10 prices fell by 8% and 15% respectively from the previous auction.
Mine-wise comparison
- All the mines have seen a fall in bid prices in November compared to October.
- The sharpest fall was from the Baroud OC and Chhal OC mines at 38% and 33%, respectively.
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