India: ECL auction on 15 Jan’26 sees higher allocation volumes, firmer G4 prices

• Demand for grades besides G4 remains selective
• Lower-CV grades clear at reserve-linked levels

Eastern Coalfields Limited’s auction on 15 January 2026 showed a clear increase in participation compared with 10 January 2026, while maintaining the same pattern of controlled, quality-driven procurement. Total bid quantity rose to 80,300 t from 62,300 t earlier.

The auction outcome indicated that buyers were willing to increase volumes, but only where grade quality and mine suitability justified higher prices.

G4 consolidates dominance, prices firm further

G4 coal strengthened its position as the core traded grade. Bid volumes increased sharply to 55,500 t, compared with 37,250 t on 10 January, accounting for nearly 69% of total auction volumes. Average G4 prices climbed up to INR 5,505/t from INR 5,380/t earlier, confirming sustained willingness to pay for mid-CV coal with reliable industrial applicability.

Mine-wise, underground sources commanded clear premiums. Parbelia UG recorded the highest G4 realisation at INR 7,413/t, followed by Patmohona UG at INR 6,194/t and Bansra UG at INR 5,848/t. Other UG mines such as Ningha UG, Chora 10 pit UG, Chora 7 and 9 pit UG and Pandaveswar UG cleared G4 largely in the INR 5,200-5,800/t range. In contrast, opencast-linked G4 from Sonepur Bazari OC and Jhanjra UG cleared lower, at INR 4,734/t and INR 4,661/t, reinforcing persistent source-based price differentiation.

Lower-CV, utility-linked grades stay range-bound

Interest outside G4 remained selective. G3 volumes stood at 6,250 t, with a relatively firm average price of INR 5,789/t, supported mainly by Porascole East UG at INR 6,353/t and Central Kajora UG at INR 5,226/t.

Lower-value grades continued to face strict price discipline. W04 accounted for 11,400 t at INR 4,164/t, while W05 cleared 4,850 t at INR 1,994/t, both largely aligned with reserve-linked levels. G5 volumes were limited to 1,100 t at INR 4,087/t, confirming that buyers avoided expanding exposure to non-core grades despite higher overall auction participation.

Buyer participation broadens, remains fragmented

Buyer participation widened compared with 10 January but remained fragmented with no dominant buyer. Shakambhari Ispat and Power emerged as the largest participant, lifting 7,050 t of G4 at INR 4,687/t, followed by Khatu Shyam Steels with 5,650 t at INR 4,537/t.

Traders such as Niti Coal Merchants, Mark Trading Company, Iconic Coal Company, Janakpur Tradelink and Shree Vasudha Coal Traders selectively bid for G4, often above INR 5,500/t. Participation in W04 and lower grades remained limited and price-sensitive, indicating mixed procurement objectives rather than aggressive stock-building.

Takeaway

Compared with the 10 January auction, the 15 January ECL auction recorded higher volumes and firmer average prices, driven almost entirely by G4 coal and UG-linked sources. While buyers expanded quantities, bidding behaviour stayed disciplined, with strength confined to grades offering immediate industrial value. The auction reaffirmed that the domestic coal market remains well supplied and buyer-led, with price support driven by grade quality rather than urgency.