SECL’s domestic coal auctions have been fetching poor responses since Oct’15; again witnessed lower bids in May’16 coal auction.
SECL, the largest subsidiary of CIL, had concluded coal auctions at different schedules on 17 May’16 and 18 May’16 with total quantity of over 1.5 MnT. The response was not found much attractive owing to lack of participants. In this auctions, only few grades received higher bids of about INR 100-150/MT over the base price. Besides, out of the total auctioned quantity, about 60% material was sold at the floor price.
However, the bid price remained stable compared to last month for different grades and mines. Whilst, 71% quantity was brought by top 10 participants in this auction.
However, domestic coal auctions haven’t been witnessed much pleasing for the company since last 8 months. Rise in domestic supply along with constantly falling global offers is deterring buyers to opt large quantity domestically rather than imported.
Low grade domestic coal with higher priced in e-auctions, periodically being conducted by SECL is the major reason behind depressing domestic auction platform.
Big participants in the auction
In the recent auction, out of the total sold quantity, more than 70% of coal was brought by top players such as BALCO, JSPL, Jindal Power, Prakash Industries, MB Power, Korba West Power, Sunil Sponge etc.
- JSPL received about 0.2 MnT of coal from Gare Pelma IV/2&3 OC (G16), with a bid price of INR 732/MT on 17 May’16 auction.
- Bharat Aluminum received total 0.3 MnT of coal from three different mines namely Manikpur OC (125,000 MT, G12), Kusmunda OC (105,050 MT, G11) and Dipka Expn (101,250 MT, G10). The quantity was brought with winning price of INR 1,068/MT, INR 1,240/MT and INR 1,427/MT, with a base price of INR 1,068/MT, INR 1,140/MT and INR 1,392/MT respectively.
- Jindal Power had brought about 0.16 MT coal at the floor price from Gare Pelma IV/2&3 OC (G16), with a bid price of INR 732/MT.
- Prakash Industries brought 60,000 MT material from Manikpur OC (G12), Dipka Expn (G10) and Vijay West (G5) size coal at price of INR 1,068/MT, INR 1,492/MT and 2,800/MT, with a base price of INR 1,068/MT, INR 1,392/MT and INR 2,800/MT respectively.
| Company | Mines | Grade | Quantity | Base Price | Bid | Sector |
| JSPL | Gare Pelma IV/2&3 | G16 | 200,000 | 732 | 732 | Sponge Iron & Power |
| Jindal Power | Gare Pelma IV/2&3 | G16 | 165,050 | 732 | 732 | Power |
| BALCO | Manikpur OC | G12 | 125,000 | 1,068 | 1,068 | Aluminium |
| Korba West Power | Gare Pelma IV/2&3 | G16 | 25,000 | 732 | 732 | Power |
| MB Power | Kusmunda OC | G11 | 25,000 | 1,140 | 1,260 | Power |
| Prakash Industries | Vijay West | G5 | 24,300 | 2,800 | 2,800 | Sponge Iron |
| Sunil Sponge | Dipka Expn | G10 | 15,000 | 1,392 | 1,492 | Sponge Iron |
| Mahavir Coal | Kusmunda | G11 | 11,800 | 1,140 | 1,260 | Trader |
| Hira Ferro Alloys | Kusmunda | G11 | 10,000 | 1,140 | 1,260 | Captive Power |
| Reliance Cement | Damini UG | G6 SLK | 8,500 | 2,604 | 2,604 | Cement |
| Balaji Tradezone | Manikpur OC | G12 | 8,000 | 1,068 | 1,068 | Trader |
| MSP Steel & Power | Chhal OC | G12 | 8,000 | 1,068 | 1,068 | Sponge Iron |
| Shivalay Ispat & Power | Dipka Expn | G10 | 8,000 | 1,392 | 1,492 | Sponge Iron |
Source: SteelMint
Quantity in MnT
Prices in INR
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