- Premium coal attracts aggressive buyer competition
- Lower-grade coal clears at notified prices
Eastern Coalfields Ltd. (ECL) witnessed significantly weaker buyer participation in its e-auction held on 13 Jul’26, with only 52,650 t allocated against an offered quantity of 714,750 t, resulting in an allocation ratio of just 7.4%. This marked a sharp decline from the previous auction held on 3 Jul’26, where 74,500 t was allocated out of 112,500 t offered, translating into an allocation ratio of 66.2%.
The lower absorption reflected cautious procurement by consumers despite the substantially higher volumes on offer. Buying interest remained concentrated in premium coal grades, with G3 and G4 continuing to attract strong premiums over their notified prices. In contrast, lower grades G9, G11, G12 and G13 were fully cleared at their notified prices, indicating comfortable market availability and limited competitive bidding for lower-quality coal.
G3 records the highest realised prices
G3 emerged as the best-performing grade in the auction, with 5,000 t allocated from Jambad UG.
Against a notified price of INR 3,719/t, the grade realised an average bid price of INR 8,514/t, translating into an average premium of nearly 129%, significantly higher than the 37% premium recorded in the previous auction.
Among buyers, Iconic Coal Company emerged as the largest purchaser with 1,400 t, followed by Monalisha Enterprise with 700 t. Kunj Traders, Gauri Shankar Enterprises, and Shree Enterprises (Coal Sales) Pvt. Ltd. procured 300 t each.
G4 continues to attract strong competition
G4 remained the second strongest-performing grade, with 5,500 t allocated across five mines.
New Kenda OC offered the highest quantity of 2,000 t, realising an average bid price of INR 6,182/t. Bhanora OC and Narsamuda UG allocated 1,000 t each at INR 7,228/t and INR 6,484/t, respectively. Porascole (W) UG sold 1,000 t at INR 5,492/t, while Dhemo Main Pit UG allocated 500 t.
Against the notified price of INR 3,557/t, G4 realised an average premium of around 87%, marginally higher than the 79% premium achieved in the previous auction.
On the buyer side, Shree Enterprises emerged as the largest purchaser with 900 t, followed by Esha Enterprise with 700 t. Vaishnavi Enterprises, Shree Krishna Enterprise, and Rashi Commodities LLP booked 500 t, 500 t, and 350 t, respectively.
G5 premiums ease
G5 witnessed limited participation, with 950 t allocated from Rajpura OC.
The grade realised an average bid price of INR 4,094/t against a notified price of INR 3,275/t, translating into a premium of around 25%, compared with 57% in the previous auction.
Among buyers, G M Engineering Works, Swastik Metals & Minerals, and Maa Vaishno Fuels Pvt. Ltd. procured 200 t each, while Shri Shanti Nath Udyog and Maa Shakambhari Udyog booked 150 t and 100 t, respectively.
Lower-grade coal clears at notified prices
Lower-grade coal witnessed steady offtake but attracted virtually no premium over notified prices.
G11 recorded the highest allocation among lower grades, with 24,450 t booked. Hura C OC contributed 13,900 t, while Rajmahal OC allocated 10,550 t. The entire quantity was sold at the notified price of INR 2,154/t.
Bhagwati Enterprises emerged as the largest buyer with 10,000 t, followed by Vision Sponge Iron Pvt. Ltd with 4,500 t. Mahadev Enterprises, Soham Trading Co., K.S.K. Agencies, and Maithan Steels and Power Ltd. procured 2,000 t each, while RIPL Components Pvt. Ltd. booked 1,000 t.
G13 witnessed allocations of 6,200 t, entirely from Rajmahal OC, at the notified price of INR 1,716/t. Vision Sponge Iron Pvt. Ltd. emerged as the largest buyer with 4,500 t, followed by Jaiswal Brothers (1,000 t) and Chemico International Pvt. Ltd. (700 t).
G9 recorded allocations of 9,850 t from G/Begunia OC, with the entire quantity sold at the notified price of INR 1,776/t. Key buyers included Uttam Kumar Mondal, Kashinath Enterprise, Sona Coal Company, Chaina Mondal, and N S R Transport, each procuring 500 t.
G12 saw only 700 t allocated from Hura C OC, with the entire quantity booked by Avyix Private Limited at the notified price of INR 1,801/t.
Market outlook
The latest ECL e-auction indicates that buying interest remains highly selective amid comfortable domestic coal availability and subdued demand from key consuming sectors. Although the auction offered a significantly larger quantity than the previous sale, the sharp decline in the allocation ratio suggests that buyers continue to procure material only on a need-based basis.
Premium coal grades are likely to remain well supported, as reflected in the strong premiums achieved by G3 and G4, highlighting consumers willingness to pay for higher-quality coal that offers better operational efficiency. In contrast, lower grades continue to face limited bidding interest, with G9, G11, G12 and G13 clearing at notified prices, indicating adequate supply and the absence of supply-side concerns.
Going forward, unless demand from steel, sponge iron and other industrial consumers improves materially, bidding activity is expected to remain concentrated in premium grades, while lower-grade coal is likely to continue trading close to notified prices.
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