Eastern Coalfields Ltd (ECL), the subsidiary of CIL carrying out coal mining in Jharkhand and West Bengal states of India, has witnessed increment rise in coal premium fetched for monthly spot coal sales during Jan’20. Although, it had only managed to sell off 66% of the total volume being floated in the e-auction.
The company had engaged Coal Junction to conduct auction on its behalf, wherein 290,830 MT coal was offered for sale conducted on two separate dates 27th and 31st Jan’20.
Incidentally, the auction held on 27 Jan’20 had envisaged sales through rail mode where the entire lot of G6 coal grade offered in 25 rakes (each rake carrying 3,894 MT) was left unsold, which had adversely affected ECL’s sales figures in the auction.
The company had sold 191,380 MT coal at an average bid price of INR 4902.4/MT, which was assessed 30% higher than the average reserve price of INR 3785.4/MT.
Apart from the slack demand recorded for rail-mode of sale for G6 coal grade which had failed to incite any bidder, the remaining unsold quantity in the auction was noted from G3 and G4 coal grades.
| Grade | Mid GCV | Quantity | Price | % Gain over Reserve Price | ||
| Offered | Sold | Reserve | Average Bid | |||
| G3 | 6550 | 50,500 | 50,497 | 4268 | 5143.20 | 21% |
| G4 | 6250 | 116,580 | 114,483 | 4088 | 5187.18 | 27% |
| G6 | 5650 | 100,750 | 3,400 | 3493 | 4759.79 | 36% |
| WG-III | – | 3,000 | 3,000 | 2725 | 5038.65 | 85% |
| G10 | 4450 | 20,000 | 20,000 | 2435 | 2667.71 | 10% |
| Total | 290,830 | 191,380 | 3785.40 | 4902.4 | 30% | |
Source: CoalMint Research
Quantity in MnT
Prices in INR/MT
Summary of E-Auction Sales:
Highest sales price of INR 6588/MT was noted for G3 coal offered from Kunustoria, fetching bids in excess of INR 2320/MT over the reserve price. (Detailed result from the auction can be seen here).
In particular, G3 coal grade was sold at an average bid price of INR 5143.2/MT, wherein price realization was lowered by comparatively inferior bids in range 570-660/MT seen for sales from Khottadih and Chitra OCP, which had covered nearly 80% volume in the lot.
Sale of G4 coal grade had received relatively higher bid price of INR 5187.18/MT, garnering bids in range of INR 660-1960/MT over the reserve price, except for coal offered from Tilboni, North Searsole and Madhiapur which had fetched bids lower than INR 100/MT.
The sole lot of coking coal offering WG-III grade from Hariazam was sold at a decent premium of 85% at INR 5038.65/MT, which had fetched bids in excess of INR 2300-2330/MT over the reserve price of INR 2725/MT. However, the sales price was noted 10% lower from that assessed in the previous term.
The lowest calorific value coal in the auction pertaining to G10 grade had seen trade of entire 20,000 MT floated for sale, at an average bid price of INR 2667.71/MT.
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