BCCL’s spot coal auction gains 47% premium in Jul ’20

Bharat Coking Coal Ltd (BCCL) has witnessed overwhelming response for its spot coal auction held on Jul ’20, after manual coal loading was permitted for the first time since lock-down had initially started.

The company had fetched a decent return in terms of premiums against bid offers where price realization of INR 5160.61/t was received for the sold quantity which was 47% higher than the assessed reserve price of INR 3519.35/t.

In the auction conducted on 30-31 Jul ’20, the company had offered 77,900 t coal for sale, of which 75,050 t was booked. As a matter of fact, the entire volume of 50,000 t put forward on the second day of auction was lifted off by the bidders.

Source: CoalMint Research
Quantity in t | Prices in INR/t

The pertinent auction had fetched tepid response in the previous months due to absence of manual loading. During Jun ’20, wherein bulk of 1,380,000 t was offered for auction, only 7% of the material accounting to 100,000 t was sold at the base price thus fetching nil premiums.

Source-wise results:

(a) Better-quality W-II grade of coking coal offered from Jogidih colliery was sold at the floor price of INR price INR 4452/t. (Detailed source-wise results can be seen here).

(b) Highest bidding was for W-III coal from AKWM colliery, which was sold at INR 6259.4/t, thus recording a gain of 75% over the reserve price of INR 3582/t.

(c) No bids were received for 400 t of W-III coal offered from New Akashkinaree colliery. In total, coal was offered in 24 lots, out of which apart from 6 lots, the remaining had fetched bid price in excess of INR 1000/t over the reserve price.

In contrast, coal in 18 lots was offered for sale in previous term, among which only three had received bids while the remaining quantity was left unsold.

(d) Entire quantity from the sole lot of G7 grade of non-coking coal from Dahibari colliery was sold at a bid price of INR 4396.25/t, which was 70% higher than the floor price.