- Mid-grade coal attracted premiums, lower-CV cleared at floors
- Buying focused on quality, not volume accumulation
South Eastern Coalfields Limited (SECL) concluded its non-coking coal auction on 30 December 2025, offering 993,000 t, of which 334,750 t was allocated. The relatively modest allocation reflected cautious year-end buying, with participants remaining selective despite adequate availability. Buyers focused on grades offering better industrial applicability, while lower-CV material largely cleared at floor-linked levels.
Grade-wise outcome shows clear divergence
Demand was uneven across grades. G10 dominated allocations, accounting for nearly 60% of total sold volumes, though premiums remained moderate, suggesting volume-driven procurement. In contrast, G8 and G7 attracted stronger premiums, reflecting tighter availability and steady interest from sponge iron and industrial consumers. G6 and lower-CV grades such as G12 and G14 cleared entirely at floor prices, highlighting strict price discipline in utility-linked segments.
Buyer participation reflects targeted procurement
Buyer participation remained fragmented, with no single buyer dominating the auction. Indermani Mineral India Pvt Ltd emerged as the largest participant, lifting 55,000 t across G10 and G8, followed by Singhal Steel and Power Pvt Ltd and Hind Unitrade Pvt Ltd, both of which focused on mid-grade coal. Most buyers lifted mixed-grade portfolios, indicating hedged procurement strategies rather than outright bullish positioning.
Overall, bidding behaviour suggested controlled restocking ahead of January, with buyers willing to pay premiums selectively for grades with immediate offtake visibility, while remaining price-sensitive elsewhere.
Takeaway
The auction reaffirmed a segmented domestic coal market, where premiums were confined to select mid-CV grades and UG sources. Despite a large offering, buyers avoided aggressive bidding, signalling comfort on supply and limited urgency heading into the new year.
Leave a Reply