- G4 grade coal from Sonepur Bazari mine leads allocations
- Lower grade coals clear auction at near notified prices
Eastern Coalfields Ltd. (ECL) allocated 104,450 t of coal against an offered quantity of 936,000 t in its e-auction held on 31 July, resulting in an allocation ratio of 11.2%, marginally higher than 10% recorded in the previous auction on 25 July. While overall absorption remained low amid comfortable domestic coal availability and the ongoing monsoon, buyers continued competing aggressively for selected underground mine-grade combinations. In contrast, lower-grade thermal coal and some washery products witnessed limited bidding, reflecting adequate market availability and need-based procurement.
G4 coal from preferred mines commands premiums
G4 remained the best-performing grade, accounting for 72,000 t of total allocations across several underground and opencast mines. However, premiums varied significantly depending on the mine, highlighting buyers’ preference for consistent coal quality and established mine performance rather than the grade alone.
JK Nagar mine coal of G4 grade realised the highest premium of around 208%, with the winning price reaching INR 10,941/t against a notified price of INR 3,557/t, although only 1,000 t was allocated. Kumardihi B UG G4 followed with a premium of around 145%, while Jhanjra UG G4 achieved nearly 139%. Belbaid G4 realised a premium of around 133%, Sonepur Bazari G4 around 122%, Lower Kenda G4 around 114%, Khottadih G4 around 113%, and Bahula G4 around 109%. Meanwhile, Mandarboni , Chora Block Inc and Shyamsundarpur mines recorded comparatively lower premiums of around 95%, 79% and 60%, respectively.
Among buyers, Compact Weighing Pvt. Ltd. emerged as the largest purchaser with 15,000 t, followed by Shyam Sel and Power Ltd. with 10,000 t, while Satyam Smelters Pvt. Ltd., RCB Minerals Pvt. Ltd. and Ratan Coal Suppliers Pvt. Ltd. also secured significant quantities.
G3 and G5 witness selective participation
Khas Kajora G3 attracted aggressive bidding, with 3,000 t allocated at an average winning price of INR 9,392/t, representing a premium of around 153% over its notified price of INR 3,719/t. The strong premium reflected continued preference for premium underground coal despite limited availability.
Among mines supplying G5 grade, Amkola recorded the highest premium of around 179%, with bids reaching INR 9,124/t against a notified price of INR 3,275/t. Siduli realised a premium of around 109%, while Barmuri achieved around 25%, indicating varying demand across mines despite the same grade.
Lower grades remain at notified prices; washery products improve
Lower-grade thermal coal continued to witness subdued competition. Rajmahal G13 cleared entirely at its notified price of INR 1,716/t, while Rajmahal G11 and Hura C G11 were fully allocated at the notified price of INR 2,154/t. Similarly, Hura C G12 coal realised its notified price of INR 1,801/t, indicating comfortable availability and requirement-based buying for lower-grade coal.
Washery products attracted relatively better interest. Shyampur B W04 recorded the highest premium of around 78%, followed by Khoodia at 55%, Kumardhubi at 49%, and Badjna at 27%. Gourangdih W05 realised a premium of 25%, while Hariajam UG W03 fetched around 15%, suggesting steady industrial demand for washery products.
Compared with the 25 July auction, Sonepur Bazari G4 strengthened further, with its realised price increasing to INR 7,883/t from around INR 7,143/t, lifting the premium to around 122% from about 101%. Rajmahal G13 and Rajmahal G11 remained unchanged, clearing at their respective notified prices in both auctions, reflecting continued comfortable availability of lower-grade coal. Meanwhile, washery products showed mixed trends, with W04 premiums easing from the previous auction as buyer interest shifted towards premium underground G4 mines.
Market outlook
The latest ECL auction reinforced the growing preference for mine-specific premium coal rather than grade-based buying. Buyers continued paying substantial premiums for selected underground mines offering consistent quality and suitable coal characteristics, while lower-grade thermal coal cleared at or near notified prices due to comfortable domestic availability. With domestic coal supplies remaining adequate and industrial demand seasonally subdued, procurement is expected to remain requirement-based. However, premium underground mines are likely to continue attracting healthy competition in the coming auctions.
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