- Bid volumes at auctions more than double
- Premium underground mines attract higher premium
Eastern Coalfields Limited (ECL) conducted its non-coking coal auction on 30 May 2026, offering around 976,000 t of coal. Against the offered quantity, total bids stood at 93,900 t, more than double the 41,550 t recorded in the 23 May auction, indicating improved participation despite continued weak sponge iron and steel market conditions.
Market participants stated that buyers remained focused on requirement-based procurement rather than aggressive stock-building. However, improved bidding in select grades suggested better buying interest compared with the previous auction.
G4 dominates auction activity
Unlike the 23 May auction where G11 emerged as the most allocated grade, the latest auction was overwhelmingly dominated by G4 coal, which attracted 60,800 t of bids at an average price of INR 5,148/t.
Khottadih OC accounted for the largest G4 volume at 20,000 t, followed by Shyamsundarpur (10,300 t) and Tilaboni UG (9,000 t). The strong response reflected continued preference for higher-quality coal suitable for sponge iron operations.
Meanwhile, G11 coal attracted 15,900 t, lower than the previous auction’s 20,250 t. Average bid prices remained stable at INR 2,154/t, indicating consistent demand for economical fuel grades.
Other grades witnessed selective participation. G5 coal secured 8,000 t at an average price of INR 4,819/t, while G3 coal attracted 4,500 t at INR 6,080/t, continuing to command one of the highest premiums in the auction.
Underground mines command premiums
Premium underground mines continued attracting stronger realisations than open-cast operations.
Khas Kajora UG recorded the highest average bid price at INR 6,080/t for G3 coal, followed by JK Nagar UG at INR 5,971/t and Lower Kenda UG at INR 5,467/t for G4 coal.
Among larger-volume mines, Khottadih OC emerged as the biggest contributor with 20,000 t of bids at INR 5,330/t, while Rajmahal OC secured 10,300 t across G11 and G13 grades.
The trend remained consistent with previous auctions, where buyers continued paying premiums for select underground and quality coal despite subdued industrial demand.
Sponge iron buyers lead participation
Buyer participation remained concentrated among sponge iron manufacturers and industrial consumers.
Vision Sponge Iron Pvt Ltd and Maan Steel & Power Ltd emerged as the largest buyers, securing 7,000 t each, followed by Rishaan Minerals Pvt Ltd (5,550 t), RCB Minerals Pvt Ltd (5,050 t), Alaknanda Balmukund Ispat Pvt Ltd (5,000 t) and Godavari Commodities Ltd (5,000 t).
Other active participants included VYS Metal, Maithan Steels & Power Ltd, Gauri Shankar Enterprises and Maa Bhawani Coal Trader, indicating continued requirement-based procurement from sponge iron-linked consumers.
Outlook
ECL auction participation may remain selective in the near term amid comfortable domestic coal availability, regular auction schedules and weak downstream steel demand. However, stronger bidding for G4 and premium underground grades suggests buyers continue seeking quality coal for operational requirements, while broader market sentiment remains cautious ahead of the monsoon season.
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