Bharat Coking Coal Ltd, the prime coking coal producer in the country, has decided to lower coal prices for monthly spot auction to be held in Feb ’21.
The company has set reserve price of coking coal by rail mode of dispatch at par with the applicable notified price. Moreover, special discount of 15% and 4.5% has been provided for washery grade W-IV and W-V coal respectively to the successful bidders at the time of coal value deposition.
The auction scheduled on 11 Feb ’21 would feature sale of 1,000,000 t coking coal via rail-mode, concurrently separate sale for 400,000 t coal and 1,500 t hard coke through road-mode are also envisaged where no such relaxations have been provided. (Detailed auction schedule can be seen here).
Cost saving for buyers:
With the relaxation kept in place, the buyers would avail saving of INR 898/t in case of W-IV coal, while for W-V coal the amount translates to INR 445/t.
Illustration for washery grade IV coal
Officials from the company informed that they were facing hard time in raising coal dispatch via road-mode while supplies via road-mode were operating well. Consequently, concession was provided in order to incite bulk booking via road-mode which offers approx. 4,000 t coal in one rake.
The provision is likely to attract coal buyers especially the power producers as they were not showing interest in coal sales due to higher prices. Besides, it would also help BCCL to replenish the excessive coal stock which has increased to 3.57 mn t at the end of Jan ’21.
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