- Demand remains cautious, buyers focus on higher grades
- G4 coal fetches 105% premium but allocations remain limited
Eastern Coalfields Ltd (ECL) allocated 10,050 tonnes (t) of non-coking coal in its e-auction held on 18 June 2026 against an offered quantity of 87,200 t, resulting in an allocation ratio of 11.5%.
Although the allocation ratio was almost stable, absolute volumes declined sharply from 51,950 t on 16 June, highlighting continued cautious buying sentiment in the spot market.
G4 coal attracts buying interest
G4 coal accounted for 5,000 t of allocations against 65,000 t offered, achieving an average bid price of INR 7,297/t. The grade fetched a premium of INR 3,740/t (105%) over its notified price of INR 3,557/t, making it the best-performing grade in the auction and underscoring buyers’ continued preference for superior-quality coal.
The realised price was significantly higher than the INR 6,346/t recorded in ECL’s 16 June auction, reflecting firmer bidding interest despite lower overall participation.
Among the key buyers, Satyam Smelters Pvt Ltd and Shyam Steel Manufacturing Ltd secured 2,000 t each, while Vision Sponge Iron Pvt Ltd purchased 1,000 t.
W04 coal clears at moderate premium
W04 coal accounted for 5,050 t of allocations and achieved an average bid price of INR 3,613/t, securing a premium of INR 723/t (25%) over its notified price of INR 2,890/t. The grade witnessed moderate buying interest, with bidders competing selectively for available volumes.
Major allocations included 500 t each to Shree Ambey Ispat (P) Ltd, Apollo Energies and Jai Balaji Trading Company.
Premium grades continue to dominate demand
The previous auction held on 16 June witnessed strong demand for premium grades, particularly G4 and G3 coal, which together accounted for the bulk of allocations and fetched substantial premiums over notified prices. In contrast, lower-grade coal attracted limited interest and largely cleared at notified prices.
The latest auction reinforces the trend of buyers focusing on higher-quality coal for immediate operational requirements while remaining cautious about broader procurement amid comfortable inventory levels.
Market outlook
The sharp decline in allocated volumes compared with the 16 June auction suggests that spot demand remains subdued despite adequate coal availability. However, the strong price realisation achieved by G4 coal indicates that consumers are still willing to compete aggressively for premium-grade material when quality requirements warrant purchases.
Market participants expect procurement activity to remain selective in the near term, with bidding interest likely to stay concentrated in higher-quality grades rather than across the broader coal basket.
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