- G4 premiums climb above 100%
- Allocation ratio improves despite larger offer
Eastern Coalfields Ltd. (ECL) allocated 89,000 t against an offered quantity of 891,000 t in its latest e-auction held on 25 Jul’26, translating into an allocation ratio of 10%. While overall absorption remained modest due to the significantly larger catalogue, the allocation ratio improved from 7.4% in the previous auction held on 18 Jul’26, when 36,600 t was allocated against 74,900 t on offer.
Despite the sharp increase in notified quantity, buyer participation remained concentrated in premium coal grades. G3 and G4 continued to command significant premiums over their notified prices, while lower-grade thermal coal, including G11, G12 and G13, largely cleared at notified prices, reflecting comfortable availability. Washery products also witnessed stronger competition compared with the previous auction, indicating sustained demand from industrial consumers.
G3 accounts for highest allocations despite softer premiums
G3 emerged as the largest allocated grade in the auction, with the entire 30,000 t allocated from Chitra OC. The mine realised an average bid price of INR 6,022/t against the notified price of INR 3,719/t, translating into a premium of around 62%.
Compared with the previous auction, G3 realised a lower average bid price. On 18 Jul’26, 6,000 t was allocated from Central Kajora UG and Porascole (E) UG, with the grade averaging INR 6,546/t, or a premium of around 76% over the notified price. The latest auction therefore saw the realised price decline by around INR 524/t, suggesting buyers remained selective despite higher allocations.
Among buyers, Shakambhari Ispat & Power Ltd. emerged as the largest purchaser with 8,300 t, followed by Adishakti Exports with 2,100 t and Ashok Singh Choudhary HUF with 1,500 t.
G4 premiums strengthen despite lower allocations
G4 recorded allocations of 17,000 t across Tilaboni UG (10,000 t), Kunustoria UG (3,500 t), Bankola UG (2,000 t) and Kalidaspur UG (1,500 t).
The grade realised an average bid price of INR 7,143/t, against the notified price of INR 3,557/t, translating into a premium of nearly 101%.
In comparison, the previous auction allocated 25,500 t of G4 across 13 mines at an average realised price of INR 6,786/t, representing a premium of around 91%. Although allocated volumes declined in the latest auction, realised prices increased by around INR 357/t, highlighting continued strong demand for premium underground coal.
Among buyers, Maan Steel & Power Ltd. emerged as the largest purchaser with 4,900 t, followed by Satyam Iron & Steel Co. Pvt. Ltd. with 1,500 t and Spintech Tubes Pvt. Ltd. with 1,000 t.
Washery products witness stronger competition
W04 washery products accounted for 20,000 t of allocations from Chapapur OC (16,000 t) and Dabor OC (4,000 t).
The grade realised an average bid price of INR 4,072/t, against the notified price of INR 2,890/t, translating into a premium of around 41%.
The latest auction marked a notable improvement over the previous auction, when W04 realised an average bid price of INR 3,620/t, or a premium of around 25%. The increase of nearly INR 453/t indicates stronger buyer interest in washery products.
Iconic Coal Company emerged as the largest buyer, procuring 6,050 t across both mines, followed by Shyam Steel Works Pvt. Ltd. with 5,000 t and Yashita Traders with 1,000 t.
Lower-grade thermal coal clears at notified prices
G11 allocations stood at 16,200 t, comprising 11,900 t from Rajmahal OC and 4,300 t from Hura C OC. The grade realised an average bid price of INR 2,154/t, identical to its notified price, indicating balanced demand and comfortable supply.
Among buyers, Cygnet Industries Ltd. secured the highest quantity at 2,500 t, followed by Apollo Energies with 2,200 t across G11 and G13, and K.S.K. Agencies with 2,000 t.
G13 witnessed allocations of 4,300 t, entirely from Rajmahal OC, and cleared at its notified price of INR 1,716/t. Mahadev Enterprises emerged as the largest buyer with 1,500 t, followed by Vision Sponge Iron Pvt. Ltd. and K.S.K. Agencies, which procured 1,000 t each.
G12 recorded the lowest allocation at 1,500 t, entirely from Hura C OC, and also cleared at its notified price of INR 1,801/t. K.S.K. Agencies purchased 1,000 t, while Mahakal Trading lifted the remaining 500 t.
Market outlook
The latest ECL e-auction demonstrates a modest improvement in overall auction absorption despite a nearly 12-fold increase in the quantity offered compared with the previous auction. Premium grades continued to outperform, with G4 recording stronger realised prices than the previous auction, while G3 premiums moderated amid higher availability. Washery products also attracted stronger bidding, whereas G11, G12 and G13 continued to clear at notified prices, reflecting sufficient market availability of lower-grade coal. Going forward, buyer interest is expected to remain concentrated in premium underground grades, while demand for lower-grade thermal coal is likely to remain need-based unless industrial activity strengthens further.
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