India: CIL offers over 20 mnt of coal in Feb’26 auctions via subsidiaries

• Higher supplies result in selective bookings by consumers 
• Average premium stands at ~35% over notified prices in Feb

CIL offered 20.6 million tonnes (mnt) of coal in February auctions, of which 10.4 mnt were allocated, translating to an allocation ratio of around 50%. Adequate domestic coal availability and improved inventories at power plants reduced the urgency for spot procurement, leading buyers to participate selectively in auctions.

Strong price premiums persist

The average premium stood at ~35% over notified prices in February. Industrial consumers such as cement and sponge iron producers continue to depend on auction coal due to limited linkage access and the flexibility of short-term procurement, sustaining competitive bidding.

Demand concentrated in specific subsidiaries 

Higher allocation ratios were observed at Northern Coalfields Limited, Western Coalfields Limited, and South Eastern Coalfields Limited, indicating relatively stronger buyer interest in coal from these subsidiaries.

In contrast, Eastern Coalfields Limited and Bharat Coking Coal Limited recorded comparatively lower allocation levels, reflecting weaker demand absorption during the month.

Coal quality, mine proximity to consumption centres, and logistical efficiency influence buyer preference, resulting in stronger demand for coal from central Indian subsidiaries.

SECL and MCL remain largest auction suppliers

SECL offered 4.58 mnt and MCL 5.46 mnt, accounting for the largest share of auctioned volumes. These subsidiaries are among the largest within CIL, enabling them to supply substantial quantities to the auction market and support availability for industrial buyers.

The February coal auctions conducted by CIL indicate ample coal availability in the domestic market, which led buyers to participate cautiously and procure selectively. However, the persistence of healthy price premiums suggests that industrial consumers continued to rely on auction coal for flexible and short-term supply requirements, particularly where long-term linkage volumes remain limited.