Singareni Collieries Company Ltd (SCCL), the domestic coal miner operating in Telangana, showed improvement in bid prices for sales concluded in the latest auction on 25 Feb’22.
The company had offered 677,500 tonnes (t) coal, of which 657,147 t were booked at an average price of INR 4,528/t, garnering a premium of 59% over the assessed price for the various grades.
In contrast, sales in Jan’22 were rather low, where out of the bulk 907,000 t put on sale, only 38% of the material was booked at a minimal bid premium of 22%.
A renewed interest was generated due to the prevailing supply tightness at a time global coal prices are soaring. Also, with mining giant Coal India Ltd (CIL) curtailing its offerings for auction sales, increased number of buyers turned up in SCCL’s window seeking cheaper alternative to the imported material.
Bid Price Comparison
Prices in INR/t | RND-round | CRR-Crushed ROM
In a competitive market, buyers were seen raising their bids to procure minimal material. Notably, except for lowest calorific coal-G15, remaining grades recorded an uptick in prices compared to the previous month’s sale.
G7 coal of RND size received highest bid of INR 7,701/t, thus maintaining elevated level over CRR size.
However, steep jump in bid prices was recorded for G8 sold at INR 7,345/t, which was higher than the superior grades offered in the auction.
SCCL’s production up
For the ongoing fiscal FY’22 (Apr’21-Mar’22), the company has already attained a higher coal production and dispatch levels compared to the previous fiscal. Till Feb’22, total coal production had reached 58.58 mnt, up 32.53% y-o-y, while dispatches were marked slightly higher at 59.58 mnt. The company set a target of 68 mnt for both production and dispatches in this fiscal.
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