India: SECL’s latest auction sees 1.46 mnt of non-coking coal sold, bids drop

• G11 leads in allocations amid strong demand
• BALCO emerges as largest buyer with 150,000 t

South Eastern Coalfields Limited (SECL) conducted a spot e-auction on 19 February 2025, with a total of 1.46 million tonnes (mnt) of non-coking coal allocated across various grades. The auction witnessed strong demand for G11, which recorded the highest allocation. However, bid prices saw mixed trends, dropping for most grades, reflecting sector-specific demand variations.

Grade-wise comparison with 12 Feb auction

• G11: This grade remained the highest allocated in both auctions. In the 19 Feb auction, 800,000 t were allocated at an average bid price of INR 1,609/t, slightly lower than INR 1,868/t on 12 Feb.

• G6: The allocation for this high-GCV grade stood at 7,250 t on 19 Feb, with a winning price of INR 3,284/t, significantly lower than INR 4,021/t on 12 Feb. The price drop suggests lower participation from sponge iron and non-power sectors.

• G10: SECL allocated 500,000 t of G10 at INR 1,671/t on 19 Feb, marking the first major allocation of this grade in recent auctions.

• G9: The 19 Feb auction saw 114,000 t allocated at INR 2,713/t, indicating a substantial increase from previous auctions, as no G9 allocation was recorded on 12 Feb.

• G8: 39,600 t of G8 were sold at INR 2,296/t on 19 Feb, with the bid price stable compared to 12 Feb. The allocation reflects steady demand for this mid-GCV grade.

• SC II: A niche grade, SC II, saw 3,100 t allocated at INR 3,412/t at the latest auction.

Buyer participation: BALCO, B.S. Sponge lead

• Bharat Aluminium Company Limited (BALCO) secured the highest quantity of 150,000 t, maintaining its position as a key buyer.
• B. S. Sponge Private Limited followed with 59,000 t, highlighting demand from the sponge iron sector.
• Hind Multi Services Private Limited came in third, securing 50,000 t.

Market impact

SECL’s frequent auctions continue to ensure a steady supply of domestic coal and have seen rising buyer participation. With domestic prices remaining competitive, buyers are increasingly opting for local lower-grade coal over costlier imports.