Coal India Ltd has reported a fall of 3% in price realization fetched in e-auctions during the final quarter of FY19. The coal company’s price realization in Q4 FY19 was noted at INR 2754/MT, down 3% Q-o-Q from INR 2847/MT in Q3 FY19, but had increased 30% Y-o-Y from INR 2112/MT in Q4 FY18.
It is pertinent to note that CIL’s price earning in e-auctions have been progressively increasing since Q2 FY18, thanks to a spurt in demand and higher international coal prices.
However, on the wake of higher coal sales made in e-auctions during Q4 FY19, prices have slowed down in the period.
Apparently, coal volume supplied in the final quarter of FY19 had increased to 16.71 MnT, overturning a declining trend witnessed since the beginning of the fiscal.
Lower Allocation in E-Auction Intended to Help Power Plants:
CIL had reported a hefty fall in e-auction volumes during FY19 in order to meet its obligations to long-term customers having fuel-supply agreements. Besides, a number of power utilities running on critical stock last year, had also demanded higher coal supplies.
Consequently, CIL’s coal supplies in e-auction had totaled 68.45 MnT in FY19, dropping 35% Y-o-Y from 106 MnT in FY18. While, supplies made under FSA were marked 14% higher on the year at 525.43 MnT.
Lately, due to higher dispatch against supply contracts, very few power plants have critically low stocks compared to the situation last year. As per the data provided by Power ministry combined coal stock at the power plants have reached 32.89 MnT at the end of May’19, marking a significant jump y-o-y from 19.08 MnT recorded at the end of May’18.
Meanwhile, CIL has made it clear that it would tentatively offer 10% of its targeted production of 660 MnT in FY20 through e-auctions, which is partly stable in line with the volumes being supplied last term.
However, with an additional quantity intended to be supplied to the non-power sector via long-term supply contracts, CIL’s price realization in e-auctions is expected to fall given that international coal prices have started to soften.
Supplies of Washed Coal:
For the FY19, CIL had breached 600 MnT mark for coal offtake, by dispatching a total of 608.14 MnT during the year.
Apart from supplies of raw coal via e-auction and FSA route, the company has dispatched 11.24 MnT washed coal in FY19. Among the total volume, quantity of washed non-coking coal was 9.82 MnT, remaining quantity comprised of washed coking coal.
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