India: SECL allocates 0.19 mnt of coal in May auctions

• Mivaan Steel emerges largest buyer followed by BS Sponge
• May-end auctions show improved demand for higher grades

South Eastern Coalfields Limited (SECL) allocated 188,800 tonnes (0.19 million tonnes) of thermal coal in two spot e-auctions held on 22 May 2025. The auctions witnessed strong participation, particularly for higher grades like G4 and G7, pushing bid prices up by 21-43% over notified levels. G4 topped the allocations, driven by robust uptake from Vijay West and Rani Atari underground (UG) mines.

Auction highlights

In the first auction, 45,000 t of coal were booked, with G4 commanding the highest premium. G4 from Rani Atari UG fetched INR 3,935/t, nearly 20% above the notified price of INR 3,279/t. G7 from Haldibari UG followed closely, with 15,000 t booked at INR 3,639/t — a steep 44% premium.

The second auction allocated 143,800 t, led by G4 (40,000 t) and G6 (103,800 t). G4 from Vijay West UG achieved the highest bid price of INR 3,997/t against a notified rate of INR 3,279/t. G6 from Rampur Batura and Jhiria UG mines was fully booked at an average premium of 21%.

Top-performing mines

Vijay West UG and Rampur Batura emerged as key contributors, collectively offering 140,000 t. Rani Atari and Haldibari UG also posted full allocations. The UG-origin coal drew heightened interest due to limited availability and consistent quality.

Leading buyers: Mivaan Steels, Agarwal Coal, BS Sponge dominate

Mivaan Steels Limited emerged as the top buyer, securing 15,350 t at an average price of INR 3,955/t. B.S. Sponge Pvt Ltd followed with 20,000 t across both auctions. Other major participants included Agarwal Coal Corporation (18,700 t), KJS Cement (13,000 t), and Shri Shyam Minerals (10,000 t), indicating strong demand from sponge iron, cement, and trading sectors.

Market insight

The May-end auctions underline growing appetite for better-grade UG coal, with G4 and G7 grades attracting some of the steepest bid premiums. As industrial demand stabilises, price-sensitive buyers are moving quickly on limited UG supplies, tightening the segment.