India’s domestic coal e-auction prices have witnessed a marginal decline after a long time i.e. Apr’15. Perhaps, it’s an indication that prices are improving, back to the previous level.
Recently concluded SECL’s spot e-auction fetched lower bids declined by INR 400-500/MT compared to previous prices. The domestic coal prices were sharply increased in couple of months in tune to the country’s growing demand owing to coal re-stocking before monsoon.
South Eastern Coalfield Limited (SECL), which had scheduled an e-auction for 765,000 MT coal on 18 & 19 June’15, has received comparatively lower bids. Continuously falling steel prices, high domestic coal stocks at plants as well as about 16 MnT imported stock at Indian ports are deterring companies to make more purchases from the market.
One participant in the auction mentioned, “The recent auction witnessed a decline of INR 400-500/MT owing to poor buying in India. The consumers have stocked enough before monsoon and currently not taking position on spot buying.”
Big participants in the Auction
In this auction the country’s big companies like BALCO, Jindal Power, Godawari Power & Ispat and Monnet Ispat etc, have bought around 50% of coal offered.
- Bharat Aluminum received total 0.16 MnT of coal from Gevra OC (stock) and Dipka mines with winning price at INR 1,300/MT (119,750 MT) for size G11 ROM coal (4000-4300 GCV) and at INR 1,842/MT(43,850 MT) for size G10 ROM coal respectively.
- Jindal Power bid at INR 1,332/MT for 40,000 MT quantity of G11 size coal (4000-4300 GCV) from Gevra OC (stock) Mine with base price of INR 1,140/MT.
- Monnet Ispat bid for different mines such as Gevra OC- G11 grade, Manikpur-G12 grade, Rani Atari (stock) G5 grade etc for about 51,800 MT Coal. The company received 30,000 MT coal at INR 1,300/MT for Gevra OC- G11 grade.
Domestic Vs Imported Prices
At present stock & sale material of Indonesian 3800 GAR (5500 GCV KCAL/Kg) coal is being offered at INR 2,650/MT with all duties and clearance included. Contrastingly, in this auction domestic material G7 (5200-5500 GCV) from Sharda (Stock) is sold at INR 3,000-3,050/MT (all royalty & Tax included after bid price).
Currently, South African RB2 (6200 GCV) coal (stock and sale) is being offered at INR 4,600-4,800/MT. Meanwhile, SECL’s current coal auction has received highest bid of INR 4,300/MT (Royalty and taxes included) (G5 sized ROM/5800-6100 GCV) from Rajgamar 4&5, with base price of INR 2,800/MT.
SECL’s Coal Auction Prices
| Months | Gevra OC- G11 | Rajgamar 4&5- G5 | Chhal OC- G12 | Baroud OC- G12 | Baroud OC- G8 |
| Nov’14 | – | 4,770 | – | 2,418 | 3,488 |
| Dec’14 | – | – | 1,288 | 1,108 | 2,500 |
| Jan’15 | 1,720 | 3,060 | 1,168 | 1,108 | 2,150 |
| Mar’15 | 1,810 | 3,630 | 1,478 | 1,318 | 2,600 |
| Apr’15 | 1,310 | 2,800 | 1,598 | 1,608 | 2,500 |
| May’15 | 1,730 | 3,800 | – | – | – |
| Jun’15 | 1,332 | 3,390 | – | – | – |
Prices in INR/MT
Source: SteelMInt
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