SECL’s coal auction held on 21 and 22 July’15 fetched comparatively lower bids, domestic coal prices decline again in July’15.
South Eastern Coalfields Limited (SECL), the largest coal producing subsidiary of CIL, had conducted an e-auction for 1.10 MnT coal on 21 & 22 July’15.The auction received bids lower by INR 200-300/MT compared to previous bid prices. About 1.05 MnT coal was sold in this auction, witnessing a marginal price fall owing to buyers’ rejection to pay high prices for domestic coal. In this auction more than 50% of the quantity was fetched by top 10 bidders.
In previous couple of months, domestic e-auction prices have declined constantly, having been influenced by falling global prices, coupled with increased domestic supply of coal.
One participant mentioned, “The recent domestic auction saw a marginal fall in bid prices at INR 200-300/MT. Ongoing Indian monsoon, falling steel prices, increased domestic supply and constantly reduced global prices are the major factors deterring participating companies from paying high for comparatively low grade domestic coal.”
Big participants in the Auction
In this auction, the top 10 quantity bidders like BALCO, Jindal Power, Indermani Mineral India, DB Power, Godawari Power, JSPL etc. have bought more than 50% of coal offered.
- Jindal Power received highest quantity of about 0.22 MnT in this auction. The company had bid for Chhal OC (stock) Mine (0.11 MT quantity) at INR 1,378/MT for G12 size coal (3700-4000 GCV).
- Bharat Aluminum received total 0.10 MnT of coal from Gevra OC (stock) Mines at winning price of INR 1,160/MT for size G11 ROM coal (4000-4300 GCV) at INR 1,140/MT base price. The company has received total 107,900 MT coal from three different mines for its power and aluminum plants.
- DB Power bid for two different mine, 50,000 MT of Gevra OC- G11 sized ROM coal and 55,000 Mt of Chhal OC-G12 ROM coal. The company received coal at price INR 1,160/MT & INR 1,398/MT respectively from both mines.
| Consignee Name | Colliery | Grade | Qty | Floor Price | Bid Price | Sector |
| Bharat Aluminium | Gevra OC(Stock) | G11 Size ROM | 100,000 | 1,140 | 1,160 | Power |
| Jindal Power | Chhal OC | G12 Size ROM | 110,000 | 1,068 | 1,378 | Power |
| Indermani Mineral | Gevra OC(Stock) | G11 Size ROM | 52,200 | 1,140 | 1,140 | Trader |
| Godawari Power & Ispat | Gevra OC(Stock) | G11 Size ROM | 30,000 | 1,140 | 1,160 | Sponge Iron |
| JSPL | Baroud OC | G8 Sized ROM | 37,400 | 2,028 | 2,218 | Steel |
| Monnet Ispat | Jampali OC | G12 Size ROM | 15,000 | 1,068 | 1,068 | Sponge Iron |
| Agarwal Fuel Corporation | Baroud OC | G8 Sized ROM | 6,000 | 2,028 | 2,238 | Trader |
| Prakash Industries | Bagdeva | G5 SLK | 6,000 | 2,820 | 3,410 | Sponge Iron |
| Reliance Cement | Bangwar UG (Bunker) | G7 SLK | 3000 | 2,292 | 2,292 | Cement |
Quantity in MT
Price in INR
Source: SteelMint
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