- G12 coal dominates total allocations, with 27% premium
- G8 fetches strongest premium of 122%, stable against 30 Apr
Mahanadi Coalfields Limited conducted its road-mode non-coking coal auction on 9 May 2026, offering around 4.36 mnt of coal. Against the offered quantity, total allocation stood at 927,000 t, more than double the 448,000 t allocated in the previous 30 April auction, indicating improved participation and stronger buying activity despite cautious downstream market conditions.
G12 dominates allocation; G8 premiums remain highest
G12 emerged as the most allocated grade in the latest auction, with 362,000 t booked at an average winning price of INR 1,394/t against the notified price of INR 1,101/t, reflecting a premium of around 27%. The sharp increase in G12 allocation compared with 54,000 t in the previous auction highlighted stronger preference for comparatively economical mid-grade coal.
G14 allocation increased to 241,550 t from 172,500 t earlier. However, premiums remained subdued, with the average winning price at INR 956/t against the notified price of INR 930/t, implying a marginal premium of around 3%, reflecting cautious bidding sentiment.
G13 allocation stood at 169,300 t, slightly lower than the previous auction volume of 171,500 t. The grade achieved an average winning price of INR 1,188/t over the notified price of INR 1,016/t, indicating a premium of around 17%.
G11 recorded strong participation with allocation of 104,000 t at an average winning price of INR 1,532/t against the notified price of INR 1,184/t, translating to a premium of nearly 29%. This reflected healthy demand for the grade from industrial consumers.
Meanwhile, G8 continued attracting the strongest premiums in the auction. Around 50,000 t were allocated at an average winning price of INR 4,283/t compared with the notified price of INR 1,931/t, indicating a premium of around 122%, almost unchanged from the previous auction of 30 April. The strong premium reflected continued demand for higher-grade coal despite softer overall market sentiment.
Buyer participation broadens across grades
Rungta Mines Limited emerged as the largest buyer in the auction, securing 179,200 t across the G12, G11, G8, and G14 grades. The company’s strong allocation in G12 indicated continued preference for stable mid-grade coal procurement.
JSW Energy Limited booked 60,200 t entirely in G12 grade, while Sanish Ventures Private Limited secured 45,000 t across G14, G13 and G11 grades.
Tata Steel Limited procured 41,000 t across G12 and G13 grades, while Vedanta Ferro Alloys Corporation Limited secured 40,000 t mainly in G12 coal.
Other active participants included Eastern Enterprises, RJA Constructions LLP, Shree Balaji Coal Udyog, Jay Dadi Traders, Param Mitter Ventures Private Limited and Nava Limited, with buying largely concentrated in G12, G13 and G14 grades.
Market sentiment remains selective
The latest auction reflected improved participation compared with the previous auction, supported by increased allocations and better response in select grades such as G12 and G11. However, subdued premiums in G14 and stable but selective bidding across several grades indicated that buyers continued to maintain cautious procurement strategies.
Lower domestic coal prices, weak sponge iron demand, and comfortable availability continued to keep overall market sentiment balanced. Nevertheless, sustained strong premiums for G8 coal suggested that demand for better-quality material remained firm despite softer downstream conditions.
Overall, the auction indicated that while buyers have returned more actively to the market, procurement remained highly grade-specific and price sensitive.
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