- G11 from Chhal OC dominates total allocations
- Agarwal Fuel Corporation remains largest bidder
SECL’s spot e-auction held on 25 July 2026 offered 1.04 mnt of coal across multiple mines and grades, of which 325,700 t was successfully allotted. Although the allocation remained modest against the quantity on offer, premiums remained firm against the previous auction. Notably, bidding intensity differed considerably across mines, even where the same grade was offered.
The auction reaffirmed a trend observed in SECL’s earlier July auctions, where buyers prioritised specific mines over grade alone, reflecting preferences based on coal quality consistency, logistics, and suitability for end-use industries. Ongoing monsoons, a hike in imported coal prices, and tight domestic coal availability due to delivery priority to the power sector have supported domestic coal prices.
Chhal OC G11 accounted for the largest allocated volume during the 25 July auction at 188,700 t, with Agarwal Fuel Corporation purchasing 32,000 t and Singhal Steel and Power securing 25,000 t. Market participants attributed the strong interest to the grade’s suitability for sponge iron production and blending, coupled with competitive pricing relative to higher grades. The grade is widely consumed by sponge iron and captive power producers owing to its competitive pricing and suitability for blending.
Mine-wise premiums differ despite identical grades
Buyers generally preferred mines that consistently supplied coal with stable quality parameters such as ash, moisture and size fraction, enabling them to optimise kiln and boiler performance. In addition, proximity to consuming regions, established rail connectivity, lower transportation costs, better loading infrastructure and familiarity with coal characteristics also influenced bidding decisions. As a result, buyers were willing to pay higher premiums for selected mines despite identical notified grades.
The sharpest variation was observed in G10 coal, where Amadand OC attracted a winning bid of INR 3,270/t against a notified price of INR 1,360/t, translating into a 140.5% premium. In contrast, Amadand UG, offering the same G10 grade, secured a winning price of only INR 2,004/t, equivalent to a 47.4% premium. Market participants also attributed this to stronger confidence in coal consistency, logistics, and previous procurement experience.
Additionally, demand for G10 coal strengthened noticeably during the 25 July auction. While Saraipalli OC G10 fetched only about a 20% premium on 10 July, Amadand OC G10 attracted a premium exceeding 140% on 25 July, reflecting stronger competition for coal from the mine.
A similar trend emerged for G8 coal. Kanchan OC recorded a winning price of INR 3,666/t against a notified price of INR 1,931/t, resulting in an 89.9% premium, substantially higher than the 53.2% premium achieved by Beherabandh UG, despite both offering G8 coal.
Notably, G8 coal has continued to attract healthy competition throughout July. Premiums ranged from around 53% to over 120% across the three auctions this month, indicating sustained demand, though buyers remained selective about mine preference.
Among other grades, Vindhya UG G9 secured a 58.3% premium, while Haldibari UG G7 attracted a 36.5% premium. Katkona UG G3 fetched a comparatively moderate 20% premium, matching the premium achieved by Chhal OC G11 and Jampali OC G14, where winning bids stood at INR 1,421/t and INR 1,116/t, respectively.
Jul’26 auctions reflect consistent mine-wise bidding trends
The 25 July auction largely reinforced the bidding pattern observed during the 10 and 11 July auctions, where buyers continued to differentiate between mines offering the same grade.
For instance, G8 coal from Kanchan OC attracted an 89.9% premium, considerably higher than Beherabandh UG’s 53.2% premium. A similar trend was evident earlier in the month, when Dhelwadih UG G8 secured the highest premium of 120.2%, compared with Jhilmili UG’s 53.9% in the 10 July auction, while the 11 July auction recorded an average premium of around 81.4% for Amlai OC and Khairaha UG, both offering G8 coal.
Likewise, Amadand OC G10 achieved a 140.5% premium on 25 July, significantly higher than Amadand UG’s 47.4%, mirroring the gap observed on 10 July, where Sharda OC G6 attracted a stronger premium than Rampur Batura G6 despite offering the same grade. The recurring trend across all three auctions suggested that buyers consistently valued mine-specific characteristics over notified coal grades when determining bid prices.
Industrial buyers focused on preferred mines
Successful bids remained concentrated among steelmakers, traders, and industrial consumers. Agarwal Fuel Corporation Pvt. Ltd. emerged as the largest successful buyer, securing 32,000 t of Chhal OC G11 coal. It was followed by Singhal Steel and Power Pvt. Ltd., which purchased 25,000 t of G11 coal along with 3,000 t of G14.
Other prominent buyers included Vimla Infrastructure (India) Pvt. Ltd., Bhatia Energy and Minerals Pvt. Ltd., Ambika Traders, Sky Alloys and Power Ltd., Balaji Coal and Scrap, KV Sales Corporation and Rimjhim Ispat Ltd.
The concentration of purchases among established industrial consumers indicated continued preference for specific mines offering operational and logistical advantages over simply procuring the lowest-priced grade. Sponge iron producers also preferred mines whose coal matched their existing blending practices and process requirements, reducing operational adjustments and improving fuel efficiency.
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