South Eastern Coalfields Limited (SECL) conducted two spot e-auctions on 23 and 25 January 2025, offering a wide range of coal grades. The auctions saw a combined allocation of 1.95 million tonnes (mnt), with major buyers securing large quantities. However, winning prices varied across grades, reflecting bidder’s demand patterns and interest levels.
23 January auction: Higher allocations of lower grades
SECL allocated 1.02 mnt of coal in the 23 January auction, with notable participation from power, cement, and sponge iron players.
- G10 and G11 grades accounted for nearly 474,000 t, with winning prices at INR 2,683/t and INR 1,904/t, respectively.
- Grades (G5, G6, G7) saw allocations of 260,650 t, with G6 attracting a winning price of INR 3,867/t, reflecting stronger demand from industries requiring higher energy content.
- G8 and G9 grades recorded winning prices of INR 2,931/t and INR 2,189/t, respectively.
- The lowest allocation was in G13 grade at 10,000 t, with a winning price of INR 1,471/t.
25 January auction: Increased allocation and price movements
In the 25 January auction, SECL increased the allocated volume to 0.93 mnt, maintaining a steady supply across various grades. Compared to the previous auction, some grades witnessed lower winning prices, influenced by bidder’s participation and grade-specific demand.
- G10 grade: Winning price fell to INR 2,068/t, indicating reduced aggressive bidding.
- G6 grade: Price declined to INR 3,591/t, reflecting lower premium over the floor price.
- G11 grade: Price rose slightly to INR 1,977/t, indicating better demand for mid-range calorific value coal.
Buyer participation: Jhabua Power and Rungta Mines lead
Several key buyers actively participated, securing large volumes:
23 January:
- Rungta Mines Limited emerged as the highest bidder, securing 192,750 t.
- Jhabua Power Limited followed with 160,000 t, focusing on lower-grade coal for power generation.
- B. S. Sponge P Ltd procured 22,300 t, catering to its sponge iron operations.
25 January:
- Jhabua Power Limited led with 200,000 t, highlighting its continued reliance on SECL’s supply.
- Rama Coal Washeries Pvt Ltd and UltraTech Cement Ltd secured 50,000 t each, ensuring steady fuel supply for their operations.
Market implications
Domestic thermal coal prices in India increased w-o-w following the latest SECL auction. 4500 GCV stood at INR 5,000/t, up INR 250/t, while 5000 GCV was at INR 5,900/t, up INR 350/t, both exw-Bilaspur. However, trades remained sluggish, as buying interest was limited. While sponge iron prices saw an uptick, many coal buyers refrained from making bulk purchases, expecting market stability in the near term.
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