Coal India subsidiary, South Eastern Coalfields Ltd (SECL), witnessed a drop in the bid premium for coal sales via spot e-auction. The premium over the notified price in February 2023 stood at 208%, while in January 2023 it was 278%.
The decline was due to the fall in bid prices recorded for the lower-grade coal. SECL conducted a spot e-auction for 1.84 mnt of non-coking coal on 7 February, 2023. Here, the offering was more than double the month prior.
Meanwhile, the entire quantity offered in February auction was booked at an average price realisation of INR 2,780/t. The grades offered were G5, G6, G7, G9, G13, G14 and G15, of which lower grades (G13, G14 and G15) constitute for almost 90% of the total quantity offered.
Grade-wise analysis
In comparison to the last auction held in January 2023, among the common grades offered, G5 prices increased as the quantity offered was on the lower side. Meanwhile, G14 has seen a steep drop of 29%.Meanwhile, the bid prices in the February 2023 auction are marginally higher than the bid prices in December 2022 auction, with the exception of G14 and G5.
Mine-wise analysis
The highest bid in the auction was INR 7,443/t for Rajgamar UG (G5), and the lowest bids went to Gare Pelma IV/2 and 3 (G14-G15). Jampali OC, in contrast, attracted the highest bids from mines offering lower GCV coal.
Top buyers
The top three customers showed interest specifically for lower grade coal and were from the power industry. Together, Jindal Power Ltd., Hindalco, and DB Power procured 40% of the entire volume put up for auction. Jindal Power Ltd booked 400,000 t, followed by Hindalco with 170,000 t. DB Power, however, purchased about 160,000 t.
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