- Premiums exceeded 100% across several preferred G4 mines
- Lower-grade coal continued to attract limited bidding
Eastern Coalfields Ltd. (ECL) recorded strong bidding for selected mine-grade combinations across its 11 and 14 August 2026 e-auctions, despite continued need-based procurement in the domestic coal market. The 11 August auction allocated 40,000 t, while the 14 August auction reported a grand total allocation of 127,350 t. Buyers continued to pay substantial premiums for preferred G3 and G4 coal, while G11-G13 coal generally attracted limited premiums.
11 August auction sees concentrated G4 buying
The 11 August auction allocated 40,000 t, against an offered quantity of about 88,000 t, giving an allocation ratio of around 45.5%. Buying was almost entirely concentrated in G4 coal, which accounted for 36,000 t, or 90% of the allocated volume.
Jhanjra UG recorded the highest G4 premium at around 155.3%, with the winning price at INR 9,080/t against a notified price of INR 3,557/t. Nakrakonda OC followed at 144.3%, while Kumardihi A UG and Khottadih UG recorded premiums of 133.8% and 130.1%, respectively.
Compact Weighing Pvt. Ltd. was the largest buyer, securing 18,000 t, followed by Shyam Sel and Power Ltd. with 8,150 t.
14 August auction expands allocations
The 14 August auction saw substantially higher allocations, with the reported grand total at 127,350 t. G9 accounted for the largest allocation at 50,000 t from G/Begunia OC, although its winning price of INR 1,860/t represented only a 4.7% premium over the notified price of INR 1,776/t.
G11 and G13 from Rajmahal OC, and G11 from Hura C OC, largely cleared at notified prices. Hura C G12 attracted a higher premium of 16.6%.
The strongest competition remained concentrated in G3 and G4 coal.
Premium coal remains the focus
The two auctions showed a clear difference between mine-specific demand for higher-quality coal and broader availability of lower grades.
On 14 August, several G4 mines commanded premiums above 140%, while Jambad G3 attracted nearly 177%. In contrast, Rajmahal G11 and G13 cleared at their notified prices, indicating limited urgency for these grades.
Among buyers, Compact Weighing Pvt. Ltd. secured the largest quantity in the 14 August auction at 22,550 t, mainly G9, while Vision Sponge Iron Pvt. Ltd. purchased 4,500 t of G13. Several steel and sponge iron consumers also participated in G11 and G4 coal.
Latest auction shows higher volumes but softer absorption
Compared with the 11 August auction, the 14 August auction reported a much higher allocation of 127,350 t versus 40,000 t. However, the offered quantity also increased substantially, from around 88,000 t to 758,650 t, meaning the allocation ratio fell from about 45.5% to 16.8%.
The results therefore point to stronger absolute buying but broader selectivity. Buyers competed aggressively for specific G3 and G4 mines while leaving a large portion of the wider catalogue unallocated. This reinforces the current market preference for quality and mine-specific coal rather than aggressive inventory building.
Note: The 14 August mine-wise quantities supplied total 123,350 t, while the provided grand total is 127,350 t. The article uses the reported grand total; the 4,000 t difference should be checked against the auction source before publication.
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