- Sponge iron producers participate actively
- ECL to auction 400,000 t on 5 Jun’26
Eastern Coalfields Limited (ECL) conducted its non-coking coal auction on 23 May 2026, offering around 683,650 t. Against this, total bids stood at 41,550 t, lower than the 62,950 t allocated in the 16 May auction but reflecting continued selective participation amid weak sponge iron demand and comfortable domestic coal availability.
Compared with the earlier May auctions, buyers remained focused on specific grades and mines rather than broad-based procurement. Requirement-based buying continued to dominate as industrial consumers avoided aggressive stock-building despite stable domestic coal prices.
G11 emerges as dominant grade
Unlike the 9 May and 16 May auctions where G4 and G3 grades dominated participation, the 23 May auction witnessed stronger interest in lower-grade coal.
G11 accounted for the highest bid quantity at 20,250 t, with Rajmahal OC alone contributing 15,800 t at an average bid price of INR 2,154/t. Hura C OC also recorded G11 bids of 4,450 t at the same price level. The grade continued to attract steady demand from industrial consumers seeking economical fuel options.
G13 coal attracted 8,000 t of bids, including 5,500 t from Rajmahal OC and 2,500 t from buyers such as K.S.K. Agencies. Average bid prices stood around INR 1,716/t, indicating relatively subdued premiums.
Meanwhile, G4 coal, which had dominated previous auctions, saw total bids of 7,200 t. However, premiums remained firm. Kustoria UG recorded the highest G4 bid price at INR 6,156/t, followed by Belbaid UG at INR 5,961/t and Bankola UG at INR 5,291/t. This reinforced continued demand for select underground coal despite weaker overall participation.
W04-grade coal from Dabor OC attracted 4,700 t at an average bid price of INR 3,613/t, while small quantities of G12 coal from Hura C OC were bid at INR 1,801/t.
Underground mines continue commanding strong premiums
Mine-wise bidding patterns remained consistent with earlier auctions, where underground mines attracted stronger realisations than open-cast operations.
Kustoria UG recorded the highest average bid price of INR 6,156/t for G4 coal, followed by Belbaid UG at INR 5,961/t. Bankola UG and Dhemo Main Pit also achieved firm prices above INR 4,500/t.
Among larger-volume mines, Rajmahal OC dominated allocations with 21,300 t across G11 and G13 grades, while Hura C OC secured bids of 5,350 t across G11 and G12 coal.
The trend indicates that buyers continued preferring select quality coal suitable for sponge iron operations and blending requirements despite overall cautious industrial demand.
Sponge iron-linked buyers remain active
Buyer participation remained concentrated among sponge iron producers, traders and industrial consumers.
Vision Sponge Iron emerged as the largest buyer with 3,000 t of G11 coal, followed by Cygnet Industries with 2,900 t and Apollo Energies with 2,500 t. K.S.K. Agencies secured 2,500 t of G13 coal, while Saroj Commodities procured 2,200 t across G11 and G13 grades.
Other active participants included Brahmaputra Metallics, Balmukund Sponge & Iron, Khemka Minerals and Jaiswal Brothers, reflecting continued requirement-based procurement from sponge iron and industrial sectors.
ECL announces 400,000 t auction on 5 Jun
ECL has announced its next e-auction on 5 June 2026, offering around 400,000 t across G3, G4, W04 and W05 grades through both road and rail modes.
The largest offering is 200,000 t of W05-grade coal from the Salanpur E cluster, followed by 110,000 t of G4 coal from Sonepur Bazari. Other key offerings include Bankola G (34,000 t), Jhanjra A (24,000 t), Mugma B (24,000 t) and Pandaveswar A (14,000 t).
Outlook
ECL auction participation is expected to remain selective in the near term amid comfortable domestic coal availability, regular auction schedules and cautious industrial demand. However, premium underground grades are likely to continue attracting stronger bids due to their limited availability and suitability for sponge iron and industrial consumers. The upcoming 5 June auction will be closely watched, particularly bidding behaviour for the large W05-grade volumes from Salanpur E.
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