Coal India Ltd (CIL), the largest coal producer in the country, has concluded coal sales for sponge iron sub-sector under the ongoing fifth tranche of linkage auctions.
The company had offered 4,697,000 MT for sale across its six subsidiaries, against which individual auctions were held for each lot during 23-31 Dec’19.
CIL managed to sell 89% of the total quantity floated in the auction at an average bid price of INR 1529.16/MT, thus fetching a premium of 19% over the average notified coal price of INR 1282.78/MT.
| Source | Company | Grade | Quantity | Price | ||
| Offered | Booked | Notified | Bid | |||
| Linked siding of Jhanjra area | ECL | G4 | 55,000 | 54,900 | 3270 | 4355 |
| Hariazam | ECL | G5 | 12,000 | 12,000 | 3007 | 3007 |
| Block-B | NCL | G5 | 200,000 | 199,400 | 3007 | 3312 |
| Vijay West UG | SECL | G5 | 200,000 | 199,500 | 2737 | 3712 |
| Karma OCP | CCL | G6 | 70,000 | 69,900 | 2524 | 3569 |
| Religara OCP | CCL | G7 | 50,000 | 49,800 | 2311 | 3346 |
| North Urimari OCP | CCL | G8 | 50,000 | 49,700 | 1757 | 2982 |
| Urimari OCP | CCL | G8 | 50,000 | 49,700 | 1757 | 3007 |
| Pouni-II OC | WCL | G11 | 20,000 | 19,800 | 1914 | 1914 |
| Gevra OC | SECL | G11 | 1,110,000 | 1,107,100 | 1145 | 1295 |
| Amrapali OCP | CCL | G11 | 400,000 | 268,300 | 1145 | 1145 |
| Bhubaneswari OCP | MCL | G12 | 300,000 | 299,500 | 1063 | 1488 |
| Spur 9 Siding | MCL | G13 | 150,000 | 149,900 | 980 | 1080 |
| Hingula OCP | MCL | G13 | 1,000,000 | 628,000 | 980 | 980 |
| Manikpur OC | SECL | G13 | 250,000 | 249,400 | 980 | 1180 |
| Belpahar OCP | MCL | G14 | 280,000 | 279,600 | 897 | 1132 |
| Garjangbahal OCP | MCL | G15 | 500,000 | 499,500 | 708 | 798 |
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
Aggressive bidding was seen for mid-grade of coal (G6-G8) offered from Central Coalfields (CCL), which had received bids in the range of INR 1045-1250/MT. Highest premium was fetched for G8 grade of coal offered from Urimari OCP, which had acquired bid price of INR 3007/MT against the notified price of INR 1757/MT.
Lower coal grades (G11-G15) offered in the auction had witnessed relatively lower bids up to INR 425/MT. Incidentally, the specified premium was only seen for a single lot of G12 grade, while remaining lots had garnered bids in range of INR 0-235/MT.
Out of the total booked quantity 928,100 MT coal was sold at their base price, which comprised three lots from the lower coal grades.
Major Coal Receivers:
Jindal Steel and Power emerged as the largest buyer in the auction with intake of 937,100 MT coal. Prakash Industries was the second-largest coal receiver, which had secured 168,700 MT coal linkages for its 6th Sponge iron kiln.
The quantity acquired by the successful bidders pertains to a long-term supply agreement on an annual basis valid for 5 years, which can also be extended for an additional 5 years on mutual consent.
Meanwhile, CIL’s coal allocation in linkage auction pertaining to sponge iron sector has fell from the previous round, wherein the company had sold 6.37 MnT coal in the Tranche IV as against 4.186 MnT recorded this term.
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