Central Coalfields Ltd (CCL) has recorded an incremental rise in price realization for coal sales conducted via spot auctions on 15-16 Jul ’20. Booked quantity in the auction was sold at a price of INR 2475.92/t, thus fetching a premium of 22% over the reserve price of INR 2030.97/t.
An improved performance in terms of price realization was reported due to stiff competition observed for high grades of coal, which had garnered better response than the lower coal grades marked for sale.
| Grade | Quantity Offered | Quantity Booked | Reserve Price | Average Bid Price |
| W-III | 21,000 | 20,940 | 3020 | 4470.47 |
| W-IV | 125,000 | 60,310 | 2535 | 2744.50 |
| W-V | 10,000 | 9,020 | 2261 | 2426.76 |
| G6 | 9,000 | 8,300 | 2524 | 3333.76 |
| G7 | 7,000 | 7,000 | 2311 | 3056.93 |
| G8 | 17,000 | 17,000 | 1757 | 3227.05 |
| G10 | 100,000 | 15,200 | 1228 | 1228.00 |
| G11 | 130,000 | 25,650 | 1145 | 1145.00 |
| G12 | 1,155,000 | 11,450 | 1063 | 1063.00 |
| G13 | 20,000 | 8,150 | 980 | 980.00 |
| Total | 1,594,000 | 183,020 | 2030.97 | 2475.92 |
Source: CoalMint Research
Quantity in t
Prices in INR/t
However, there was no major recovery seen in terms of sales quantity owing to continuing lock-down. Offered volume in the auction was reduced by 29% m-o-m to 1,594,000 t against which 11% of the material accounting to 183,020 t was sold during the month.
Contrarily, in the auction held during Jun ’20, the company had managed to sale 573,120 t coal, which was nearly 26% of the total volume put up for sale.
Key inferences drawn from the auction:
(a) Lower GCV coal (ranging from G10 to G13) failed to incite adequate response which was sold at the base price. Quantity offered from this lot which constituted majority of total volume, yielded an allocation of mere 4%. (Detailed results can be seen here).
Remaining lot had envisaged 65% allocation in the auction, wherein barring two collieries (Govindpur and Tapin South), others had managed sales percentage above 80% against the offered quantity.
(b) A comparatively aggressive bidding was seen in the latest auction, where G7 grade coal offered from Bhurkunda fetched premium of INR 2193/t over reserve price, which was nearly 30% higher than the highest bid received in the previous term.
Overall, G8 grade had reported the best growth rate in terms of premium which was sold at an average price of INR 3227.05/t against the reserve price of INR 1757/t.
(c) Sale of coking coal: Bids received for W-III grade were assessed INR 1300/t over the reserve price, across the three collieries offering the coal. But, a gradual decline in bids was seen for W-IV and W-V grade of coal.
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