- G6, G7 see price surge; G11 highest allocated
- BALCO, Ultratech emerge as leading buyers
South Eastern Coalfields Limited (SECL) conducted multiple spot e-auctions in March 2025, collectively allocating around 2.25 million tonnes (mnt) of non-coking coal across diverse grades. High-grade coal such as G6 and G7 saw a price surge, reflecting strong demand from sectors like cement and sponge iron, while G11 remained a key volume driver in allocations.
Grade-wise price, allocation trends
6 Mar auction
SECL allocated 858,250 t, led by G10 (433,750 t), at INR 1,620/t, marginally above the floor price. G6 saw 176,000 t allocated at a high INR 3,747/t, up from INR 3,284/t on 19 February, indicating firm demand. G8 recorded 230,000 t sold at INR 3,059/t, a notable jump from the INR 2,296/t seen on 19 February.
12 Mar auction
Total allocation stood at 582,400 t, with G11, leading at 500,000 t, sold at INR 1,613/t, nearly stable compared to INR 1,609/t on 19 February. G6 saw 60,000 t booked at INR 3,870/t – the highest price the grade fetched in March.
13 Mar auction
Two separate sales resulted in 764,400 t being sold. G11 (304,000 t at INR 1,442/t) and G12 (260,100 t at INR 1,309/t) dominated, while G10 fetched INR 2,389/t, amid a significant rise in bids for the grade.
20 Mar auction
SECL sold 42,600 t, featuring niche grades such as G3 (12,000 t at INR 4,802/t) and SC II (3,600 t at INR 3,412/t). G9 saw stable allocations at INR 2,622/t.
Allocation trend comparison
- Highest allocation in March: G11 with 804,000 t (12 and 13 March combined) maintained dominance in SECL’s auctions.
- G6’s allocation dropped from 176,000 t (6 Mar) to 60,000 t (12 Mar), but prices rose, indicating decent demand from buyers.
- Total auctioned volume in March (combined): Approximately 2.25 mnt, significantly higher than February’s 1.46 mnt, signalling increased supply and buyer participation.
- In all auctions, winning prices of G6 and G7 exceeded floor prices by 15-20%, indicating competitive bidding.
- At the 6 March auction, bids for G10 were just above the floor price. However, bids at the 13 March auction were 47% higher than the floor price, pointing to fluctuating demand cycles.
- SC II and niche grades such as G3 in the 20 March auction commanded premium pricing – G3 was sold at Rs 4,802/t, nearly 40% higher than the floor, indicating limited availability and niche demand.
Buyer participation: BALCO, Ultratech, BS Sponge lead
Bharat Aluminium Company Limited (BALCO) retained its leading position, with 150,000 t booked at the 12 March auction.
Ultratech Cement Ltd secured 50,000 t on 6 March, reflecting robust demand from the cement sector.
B.S. Sponge Pvt Ltd acquired 35,000 t at the same auction, while Indermani Mineral (India) Pvt. Ltd. bought 54,200 t on 13 March.
Market impact
SECL’s March auctions saw increased bidding for high-GCV coal, indicating industrial demand, especially in cement and metals. Domestic prices rose for several grades, encouraging buyers to secure supplies amid fluctuating import dynamics.
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