- G8 premiums strengthen despite lower overall allocations
- G14 emerges as the largest allocated grade
South Eastern Coalfields Ltd. (SECL) allocated 200,150 t of non-coking coal in its e-auction held on 17 August 2026, against 818,100 t offered, resulting in an allocation ratio of around 24.5%. This was sharply lower than the 429,050 t allocated against 705,050 t offered on 10 August, when the allocation ratio stood at around 60.9%. The latest result indicates more selective buying, with demand concentrated in specific grades and sources.
G8 continues to command strong premiums
G8 remained the strongest-performing grade in the latest auction, with 43,000 t allocated from Bangwar UG and Rajendra UG. The weighted average winning price was around INR 4,239/t, against a notified price of INR 1,931/t, translating into a premium of around 119.5%.
This was higher than the approximately 112.7% premium recorded for G8 in the 10 August auction, although allocated quantity declined from 72,000 t to 43,000 t.
G14 leads allocations in latest auction
G14 was the largest allocated grade on 17 August, with 79,000 t allocated across Baroud OC and Baroud Silo. Baroud OC recorded a winning price of INR 1,023/t, while Baroud Silo realised INR 1,116/t, against a notified price of INR 930/t.
The weighted average winning price of around INR 1,070/t represented a premium of approximately 15.1%. The relatively modest premium compared with G8 suggests lower-grade coal continued to attract more measured bidding.
G11 was the second-largest allocated grade at 56,050 t, with the bulk coming from Chhal OC. Its weighted average winning price of around INR 1,422/t against a notified price of INR 1,184/t resulted in a premium of around 20.1%.
Sharp decline in allocations from 10 August
The latest auction saw allocated volumes fall by around 53.3% from 429,050 t on 10 August to 200,150 t on 17 August. At the same time, the offered quantity increased by around 16.0%, from 705,050 t to 818,100 t.
The sharp decline in absorption was mainly due to lower allocations of grades that had attracted strong participation in the previous auction. G13, which had 100,000 t allocated on 10 August, saw no allocation in the latest result. G3 allocations fell by around 97.8% to 2,100 t, while G6 and G7 were not allocated in the latest auction.
G11 allocations declined by around 48.1%, while G8 allocations fell by around 40.3%. Despite the lower G8 volume, its premium strengthened by nearly 6.8 percentage points, indicating continued competition for this grade.
Premiums remain concentrated in selected grades
G5 also attracted strong bidding in the latest auction. Rajgamar UG’s 20,000 t allocation at INR 4,160/t represented a premium of around 38.4% over its notified price of INR 3,005/t.
By comparison, G3’s 2,100 t allocation at INR 4,139/t represented a premium of around 20.0%, down from 24.7% for G3 in the 10 August auction.
The results indicate that buyers remained willing to pay significant premiums for preferred coal qualities, but participation was not broad-based across the catalogue. The stronger G8 premium, alongside healthy bidding for G5, contrasts with more moderate premiums for G11 and G14.
Overall, the 17 August auction points to selective procurement rather than a broad strengthening in demand. The lower allocation ratio, despite a larger offering, suggests buyers remained cautious and focused on specific grades where quality and economics justified higher bids.
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