SECL’s November coal auction fetched comparatively lower bids as a large portion of material was sold at floor price.
South Eastern Coalfields Limited (SECL), the largest coal producing subsidiary of CIL, had concluded an e-auction for 1.2 MnT coal on 20 & 23 Nov’15. The company sold about 80% of the total quantity. Prices were more or less same as compared to last month and mostly sold at floor price for different grades and mines.
The coal e-auction front witnessing a stability owing to buyers rejection to pay high prices for low GCV domestic coal. While, prices are falling on account of constant fall in global coal prices.
[su_quote]A participant highlighted, “The recent domestic auction saw a stability on bid prices and more or less sold at basic price. Rise in domestic production by CIL, falling steel prices, slowing global demand and bottomed touch global coal market are the major factors deterring participating companies from paying high for comparatively low grade domestic coal.”[/su_quote]
Big participants in auction
About 0.96 MnT coal was sold in this auction. More than 50% of the quantity was fetched by top 10 bidders such as BALCO, Jindal Power, Indermani Mineral India, DB Power, Prakash Industries, JSPL, MSP Steel and Power etc.
• Jindal Power received highest quantity of about 0.16 MnT in this auction. The company had bid for Chhal OC (stock) Mine (0.15 MT quantity) at INR 1,268/MT for G12 size coal (3700-4000 GCV) and Gare Pelma IV/2&3 at INR 1,092/MT for G16 ROM coal.
• Bharat Aluminum received total 50,000 MT of coal from Manikpur OC (Stock) at winning price of INR 1,178/MT for size G12 ROM coal (3700-4000 GCV) at base price of INR 1,068/MT. The company has received total 0.15 MnT coal from 4 different mines for its power and aluminum plants.
• DB Power bid for total 0.1 MnT coal from 4 different mines. Received about 50,000 MT coal from Baroud OCM – G8 sized ROM at INR 2,028/MT on floor price.
• Indermani Minerals fetched about 0.1 MnT of coal from 4 different mines like Manikpur OC (Stock), Gevra OC (Stock), Kusmunda OC (Stock), Chhal OC for G11 and G12 grade coal.
| Company Name | Colliery | Grade | Qty | Floor Price | Bid Price | Sector |
| Jindal Power | Chhal OC | G12 Size | 150,000 | 1,068 | 1,268 | Power |
| Indermani Mineral | Gevra OC | G11 Size | 62,150 | 1,140 | 1,140 | Trader |
| Bharat Aluminium | Manikpur OC | G12 Size | 50,000 | 1,068 | 1,178 | Aluminium |
| DB Power | Baroud OCM | G8 Sized | 50000 | 2,028 | 2,028 | Power |
| JSPL | Baroud OC | G8 Sized | 30,000 | 1,068 | 1,278 | Sponge Iron |
| Monnet Ispat | Gare Pelma IV/2&3 | G16 Sized ROM | 10,000 | 732 | 1,092 | Sponge Iron |
| MSP Steel & Power | Chhal OC | G12 Sized | 15,000 | 1,068 | 1,318 | Sponge Iron |
| Prakash Industries | Manikpur OC | G12 Sized | 16,000 | 1,068 | 1,178 | Steel |
Quantity in MT
Prices in INR
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