Domestic coal auction remains setback for SECL, only half of the coal was sold in Dec’16. While, 28% quantity was sold at base price.
SECL, a largest subsidiary of CIL, had concluded its monthly coal auction on two different dates, 5 Dec’16 and 15 Dec’16 with a total quantity of 2.92 MnT. The response was not much attractive for the company as only 52% of the quantity was sold due to lack of participation.
Meanwhile, in this auction, bid prices were more or less unaltered and about 28% quantity was sold at base price. Besides, few grades received higher bids of about INR 100-300/MT over the base price.
SteelMint assessed that since the beginning of 2016, SECL’s coal auction platform is getting poorer every month on the wake of increased domestic supply that is cheaper in quality. However at present, Indian domestic demand has fallen owing to demonetization, led to distressful coal sales in Dec’16.
Meanwhile, about 28% quantity was brought by Indian coal traders and rest quantity goes to the Power, Sponge, Cement, Aluminium etc.
Big participants in the auction
In the recent auction, out of the total sold quantity, more than 50% of coal was brought by top players such as BALCO, Jindal Power, Hind Energy, JSPL, Hindalco Industries, Nalwa Steel & Power, Godawari Power, Ambuja Cement etc.
- Bharat Aluminum received total 0.3 MnT of coal from two different mines namely Gevra OC (Stock/Bunker) (144,000 MT, G11) and Dipka Expn (Stock) (120,000 MT, G10). The quantity was brought with winning price of INR 1,314/MT and INR 1,476/MT, with a base price of INR 1,164/MT and INR 1,416/MT respectively.
- Jindal Power had brought about 0.2 MT coal from Baroud OCM (60,000 MT, G8), Gare Pelma IV/2&3 (G12, G14 & G16), Gare Pelma IV/1 (G12) at INR 2,040/MT, INR 1,452-936-768/MT and INR 1,258/MT respectively.
- Hindalco brought 70,000 MT coal at base price from three different mines named as Jampali OC (G12), Gare Pelma IV/2&3 (G12), and Mahan II OC (G9) at price of INR 1,032/MT, INR 1,472/MT and 1,584/MT respectively.
- JSPL received about 45,000 MT coal from Gare Pelma IV/2&3 (G12), Gare Pelma IV/1 (G12) at INR 1,452/MT and INR 1,228/MT on base price.
| Company | Colliery | Grade | Qty | Base,Price | Bid,Price | Sector |
| BALCO | Dipka Expn | G10 | 120,000 | 1,416 | 1,476 | Power |
| Jindal Power | Baroud OCM | G8 | 60,000 | 2,040 | 2,040 | Steel |
| Hind Energy | Gevra OC (Stock) | G11 | 40,000 | 1,164 | 1,314 | Trader |
| JSPL | Gare PelmaIV/2&3 | G12 | 35,000 | 1,092 | 1,452 | Sponge Iron |
| Hindalco Industries | Mahan II OC | G9 | 30,000 | 1,584 | 1,584 | Aluminium |
| Godawari Power & Is. | Gevra OC (Stock) | G11 | 25,000 | 1,164 | 1,314 | Captive Power |
| Nalwa Steel & Power | Gare Pelma IV/1 | G12 | 25,000 | 1,092 | 1,282 | Steel |
| Ambuja Cements | Gevra OC (Stock) | G11 | 22,000 | 1,164 | 1,304 | Cement |
| TRN Energy | Gare Pelma IV/2&3 | G14 | 20,000 | 936 | 936 | Captive Power |
| ACC Cement | Gevra OC (Stock) | G11 | 18,000 | 1,164 | 1,304 | Cement |
| Indermani Mineral | Dipka Expn (Stock) | G10 | 16,350 | 1,416 | 1,456 | Trader |
| Ganesh Ores | Mahan II OC | G9 | 15,000 | 1,584 | 1,584 | Trader |
| Monnet Ispat & En | Baroud OCM | G8 | 15,000 | 2,040 | 2,040 | Sponge Iron |
| Century Pulp & Paper | Gevra OC (Stock) | G11 | 14,150 | 1,164 | 1,314 | Paper |
| Emami Cement | Gevra OC (Stock) | G11 | 12,000 | 1,164 | 1,334 | Cement |
Source: SteelMint
Quantity in MT
Prices in INR
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