Bharat Coking Coal Ltd (BCCL) has received tepid response for coal sales in spot e-auction which was conducted after a gap of one month.
The auction was held on 22 May’20 by MSTC on behalf of the miner, wherein 435,500 MT coal was offered. However, in the midst of dull market conditions, buyers were seen reluctant to procure coal in the auction.
Contrary to the auction conducted in Mar’20, where 93% of the offered volume was lifted by the bidders. Auction in May’20 had witnessed sales of only 16% of the material being offered.
BCCL had envisaged sale of W-III, W-IV, W-V and G 5 grades of coal via spot auction which were put forward from its various collieries. Although a dull sale was observed overall, W-IV grade had managed to fetch noticeable bid price in the auction.
Detailed source-wise result can be seen here.
| Grade | Notified Price | Reserve Price | Avg Bid Price | Gain on Reserve Price | Offer Quantity | Booked Quantity |
| W-III | 3312 | 3312 | – | – | 80000 | 0 |
| W-IV | 3147 | 3147 | 3191.69 | 1.42% | 215500 | 51550 |
| W-V | 2553 | 2553 | 2553.57 | 0.02% | 30000 | 6250 |
| G 5 | 2737 | 2737 | 2737.20 | 0.01% | 110000 | 9800 |
| Grand Total | 435500 | 67600 | ||||
Quantity in MT
Prices in INR/MT
Key inferences drawn from the spot auction:
(a) Highest bid price was received for sale of W-IV coal from Amalgamated Block-II colliery. Moreover, entire quantity offered from the lot was also sold.
(b) Booking of entire coal volume was also seen from AKWM, Phularitand and Bastacolla collieries. Incidentally, W-IV coal from these four lots had gained bids in excess of INR 34-360/MT over the reserve price. Whereas, coal from remaining lots were sold at rates that were close to the base price.
(c) There was a better affinity seen from buyers to procure coal in road mode of auction rather than bulk booking in rail-mode. Evidently, more than one third of the material was sold in the road-mode of sale, whereas in case of rail-mode, only two out of the 65 offered coal rakes were lifted.
(d) In the rail-mode of auction, no bids were received for coking coal grades offered from various sidings.
Despite the subdued response, it is expected that the company would offer more coal volume in the forthcoming auctions, in order to liquidate the rising stock levels. As on 23 May’20, vendible coal stock at BCCL has reached 3.22 MnT which was assessed 2.99 MnT at the end of Apr’20.
The company has already placed production cuts to tackle the impeding situation.
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