- Rungta emerges as highest bidder in auction
- Premiums remain moderate across grades
Mahanadi Coalfields Ltd’s (MCL) non-coking coal auction witnessed allocations of 768,650 t against an offered quantity of 2.75 mnt, resulting in an absorption rate of just around 28%. The low allocation ratio reflected cautious procurement behaviour despite abundant coal availability. Buying activity remained concentrated among steel, sponge iron and industrial consumers, with lower-grade coal accounting for the bulk of allocations.
G12 coal records highest allocations
G12 coal emerged as the most preferred grade in the auction, accounting for 282,000 t of total allocations. Bhubaneswari OCP alone recorded bookings of 150,000 t, followed by Ananta OCP with 100,000 t and Jagannath OCP with 20,000 t.
The grade cleared at prices ranging between INR 1,367/t and INR 1,850/t against a notified price of INR 1,101/t. Premiums ranged from 24% to 68%, with Sardega Siding recording the highest premium among G12 sources.
The strong participation indicated continued demand from industrial consumers seeking competitively priced fuel coal.
G14 coal attracts limited premiums
G14 coal accounted for 341,850 t of allocations, making it the second-largest contributor to auction volumes. Garjanbahal OC Mine, integrated LBL OCP and Samleswari OCP accounted for a major share of bookings.
However, price premiums remained modest. Most G14 sources cleared at INR 977-988/t against a notified price of INR 930/t, reflecting premiums of around 5-6%. Hingula OCP and Samleswari OCP cleared at the notified price itself, indicating comfortable availability and limited bidding aggression.
The results suggested that buyers were willing to secure volumes but remained price-sensitive for lower-grade coal.
G11 receives stable interest
G11 coal from Siarmal OCP witnessed allocations of 100,000 t and cleared at an average winning price of INR 1,500/t against a notified price of INR 1,184/t. This translated into a premium of around 27%.
The grade continued attracting interest from steel and industrial consumers due to its relatively better quality compared with lower grades.
G13 and premium grades witness selective demand
G13 coal from Lajkura OCP, LOCM 3 Rail Siding and Orient 2 UG Mine witnessed combined allocations of 44,500 t. The grade cleared entirely at its notified price of INR 1,016/t, indicating limited competition among buyers.
Meanwhile, higher-grade coal witnessed selective participation. G8 coal from Nandira UG Mine was cleared at INR 1,931/t, matching its notified price. The quantity allocated, however, remained negligible at only 300 t.
The auction results highlighted stronger demand for volume-based fuel requirements rather than premium-quality coal.
Rungta Group dominates buyer participation
Buyer participation remained concentrated among a handful of industrial consumers. Rungta (Odisha and Jharkhand) emerged as the largest buyer, secured 312,550 t across G11, G12, G13 and G14 grades.
Other notable buyers included Feegrade and Company Private Limited with 90,000 t, Shyam Metalics and Energy Limited with 50,000 t, Sanish Ventures Private Limited with 25,000 t and Tata Steel Limited with 18,000 t.
Market sentiment remains cautious
The auction reflected comfortable coal availability and requirement-based buying. While G12 and G11 coal achieved healthy premiums, lower-grade coal largely cleared near notified prices. The low absorption rate despite substantial volumes on offer indicated that consumers continued to procure selectively, supported by adequate coal availability and stable domestic market conditions.
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