India: SECL’s 0.45 mnt coal auction receives active response; bids surge across grades

• Vedanta Washery remains top bidder followed by BS Sponge
• Blended average winning price rises 13% over reserve price

CIL subsidiary South Eastern Coalfields Ltd (SECL) allocated 450,100 tonnes (t) of coal in its latest auction held on 11 June 2025. Volumes were dominated by low-grades, while premiums remained firm across high-CV grades.

Auction highlights
The G15 grade saw the highest allocation at 94,500 t, booked at INR 882/t, which was about 20% higher than its notified price of INR 735/t. G10 followed with 69,800 t booked at INR 1,640/t compared to the notified INR 1,356/t. Notably, G9 was booked at INR 3,212/t against the notified price of INR 1,502/t, reflecting a sharp premium of INR 1,710/t

High-CV grades witnessed significant premiums. G3 was booked at INR 4,128/t against its notified price of INR 3,440/t, registering a premium of INR 688/t. G5 fetched INR 3,597/t over a notified price of INR 2,997/t, showing a premium of INR 600/t.

Meanwhile, G6 was allocated at INR 3,305/t compared to its notified price of INR 2,754/t, reflecting a premium of INR 551/t. These strong margins suggest firm demand for select high-CV grades despite the market’s cautious sentiment.

Top buyers
Vedanta Washery & Logistics Solutions emerged as the top buyer, securing 53,000 t at INR 1,961/t. B. S. Sponge Pvt. Ltd. picked up 42,000 t at an aggressive price of INR 2,780/t. Other major participants included Singhal Steel with 23,000 t bought at INR 1,947/t, BALCO with 17,000 t purchased at INR 1,236/t, and Ambika Tradelink with 16,000 t at INR 882/t.

Key coal sources
High allocations came from Chhal opencast mine (OC) at 124,800 t, Jagannathpur OC (112,000 t), and Baroud OC (90,500 t). These mines continued to be the backbone of SECL’s auction supplies. Churcha and Dhelwadih underground mines (UG) fetched the top prices at INR 4,128/t and INR 3,646/t, respectively, due to their high coal grades.

Market insight
The 11 June auction showed sustained interest across both low- and high-grade coals. With a blended average winning price of INR 1,945/t, which is 13% above the reserve price of INR 1,723/t, demand stayed healthy despite muted industrial offtake in open markets.