India: Nearly 2 mnt of coal sold in recent SECL auction

• G11 grade coal comprises 45% of allotted quantity
• KSK Mahanadi, BALCO emerge as top buyers

South Eastern Coalfields Limited (SECL) conducted a spot e-auction on 29 March 2025, allocating 1.99 million tonnes (mnt) of non-coking coal across seven grades. G11 was the most allocated grade with 904,000 t, while high-GCV grades such as G6 and G5 saw significant premiums over floor prices in the auction, indicating strong industrial demand.

Auction highlights

SECL allocated 1.99 mnt coal in total, with G11 accounting for the bulk, sold at an average winning price of INR 1,497/t — around 6% above the floor. G10 followed with 752,300 t booked at INR 1,628.72/t, closely aligned with the floor price, showing stable demand.

G6 recorded 147,300 t sold at INR 3,839.92/t — nearly 16% higher than the floor, reflecting firm interest from sectors like cement and sponge iron. G5, a relatively niche grade, fetched INR 4,029.11/t for 52,500 t, the highest price across grades, exceeding the floor by 12%.

Other high-GCV grades such as G8 (117,750 t at INR 2,593/t) and G9 (9,000 t at INR 3,711/t) also commanded strong premiums, while G7 (7,000 t) was booked exactly at the floor price.

High allocations from Gevra, Dipka

G11 coal was sourced entirely from the Gevra opencast (OC) mine, with 900,000 t out of the 904,000 t offered receiving bids — reflecting near-complete offtake. Dipka OC saw full allocation of its 752,300 t of G10, substantially exceeding its offered quantity of 100,400 t, likely driven by a revised or late upward revision in offering. This indicates strong competition and demand consolidation at source level.

Buyer participation: KSK Mahanadi, BALCO top the list

KSK Mahanadi Power Company Limited booked the highest volume at 272,000 t, followed by Bharat Aluminium Co. Ltd. (BALCO) with 104,000 t. Other key buyers included RAMA Coal Washeries (100,000 t), Paras Power & Coal Benefication (90,000 t), and Paras Trading Company (60,000 t).

Market insight

The auction reflects growing demand for high-GCV grades amid tightening domestic coal availability. The sharp premiums for G6, G5, and G9 suggest intensified competition from power, metals, and sponge iron sectors. G11 continues to play a vital role as a volume driver for SECL’s auctions.