SECL’s coal auction held on 16 Dec, 2014 has fetched comparatively lower bids. In this auction, bid prices fell by around INR 800-1,000/MT for few grades, which indicates that prices are getting back on the previous level.
South Eastern Coalfield Limited (SECL), which had scheduled an e-auction for 243,000 MT coal on 16 Dec’14, has received comparatively lower bids because of buyers’ refusal to pay high prices in the domestic e auction. In previous few consecutive months, domestic e-auction prices have risen sharply between Aug’14 & Oct’14 on the grounds of Supreme Court’s verdict on coal blocks allocation and reduced coal quantity in domestic e-auction. However, in the month of August, auction prices had touched its peak as the domestic consumers were worried, if the case judgment comes against coal block holders, it will cripple entire power and related industry.
As per a participant, “Bid prices have reduced by INR 800-1,000/MT against previous auction prices. While, base prices remain same.”
Bid Prices of Different Mines
|
Colliery |
Grade |
Qty (MT) |
Floor Prices |
Bid Prices (Basic) |
Sector |
| Chhal OC | G12 Sized ROM (-100 mm) | 86,900 | 1,068 | 1,778 | Power |
| Baroud OC | G8 Sized ROM | 30,000 | 2,028 | 2,488 | Cement |
| Kurja UG | G5 SLK | 15,000 | 2,820 | 3,520 | Trader |
| Baroud OC | G8 Sized ROM | 20,000 | 2,028 | 2,508 | Sponge Iron |
| Rehar UG | G6 SLK | 3,050 | 2,170 | 3,410 | Trader |
| Jhiria UG | G4 SLK | 1,000 | 3,510 | 3,510 | Trader |
| Bishrampur OC | G4 Sized ROM | 2,500 | 3,490 | 4,590 | Trader |
| Kanchan OC (Stock) | G6 Sized ROM | 750 | 2,150 | 4,380 | Geletine |
Prices in INR
Domestic Vs Imported Prices
At present, imported material of Indonesian 5200-5300 GCV (3400 GAR) landed on port is costing at around INR 2,700-2,800/MT. Contrastingly, in this auction domestic material G8 (4900-5200 GCV) from Baroud OC is sold at INR 3,100-3,200/MT (all royalty & Tax included after bid price).
Currently, South African RB2 (6200 GCV) coal (stock and sale) is being offered at INR 5,300-5,400/MT. Meanwhile, SECL’s current coal auction has received highest bid of INR 5,590/MT (G6 sized ROM/5800-6100 GCV) from AMADAND OC mine, with base price of INR 2,330/MT.
SECL is the largest coal producing subsidiary of CIL, operating 89 mines in Chhattisgarh & Madhya Pradesh. Company has produced about 124 MnT Coal in FY14, out of which, about 13 MnT sold through e-auction.
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