South Eastern Coalfields Ltd (SECL), CIL’s largest coal producing subsidiary has attained 100% sales in the recently concluded coal spot e-auction, wherein the entire volume floated for sales were taken by the consumers.
The monthly auction for Aug’19 was concluded on 26 Aug’19.
SECL had put forward 367,000 MT coal in 13 lots from its various mines, varying across grades ranging from G5 to G15.
The company had received an average bid price of INR 2364.33/MT in the current auction against the average reserve price of INR 1552.27/MT, thereby fetching a premium of 52% in the process. Company’s previous spot auction had also seen 100% sales during Jun’19, but had fetched a comparatively better premium of 66% over the notified reserve coal price.
No spot e-auction was conducted in the month of Jul’19.
Notably, the company’s falling coal dispatch in the FY20, has envisaged higher participation in the spot coal auctions. During the first 5 months of FY20 (Apr-Aug’20), SECL’s coal off-take was recorded at 59.35 MnT, down 10% Y-o-Y from 65.77 MnT noted in the year-ago period.
During Aug’19, barring Balrampur, Jampali, both the Gare Palema mines and sales of G12 coal grade from Mahan-II, all the other sources had garnered bid price in excess of INR 1000/MT for the respective offered coal grade.
Highest bid price were fetched for sale of G5 grade of coal, which was inevitably the superior grade among the rest of the lot. While, highest premium of 79% was received for sale of G8 grade coal from Kanchan OC, wherein average bid price of INR 3780.75/MT was fetched against the set reserve price of INR 2109/MT.
| Source | Grade | Reserve Price | Average Bid Price | % Increase over Reserve Price | Quantity Sold |
| Rajgamar 4&5 | G5 | 3285 | 4593.75 | 40% | 8000 |
| Gayathri UG | G5 | 3285 | 4621.96 | 41% | 23000 |
| Vijay West | G5 | 3285 | 4453.28 | 36% | 32000 |
| Kumda 7&8 | G6 | 3029 | 4782 | 58% | 5000 |
| Rehar UG | G6 | 3029 | 4552.33 | 50% | 12000 |
| Kanchan OC | G8 | 2109 | 3780.75 | 79% | 10000 |
| Damini OC | G9 | 1642 | 2752.83 | 68% | 12000 |
| Mahan II OC | G10 | 1474 | 2587.14 | 76% | 35000 |
| Mahan II OC | G12 | 1276 | 2046.93 | 60% | 35000 |
| Balrampur UG | G13 | 1176 | 1216 | 3% | 5000 |
| Gare Palema IV/2&3 | G14 | 1077 | 1898.67 | 76% | 30000 |
| Gare Palema IV/1 | G15 | 850 | 1404.7 | 65% | 10000 |
| Jampali OC | G15 | 850 | 1289.92 | 52% | 150000 |
Source: CoalMint Research
Prices in INR/MT
Quantity in MT
Major Coal Receivers:
The monthly spot auction had seen an active participation from the traders which had booked 39% of the total coal volume. Power utilities were the highest recipient among coal end-users, followed by Captive power plants.
Sponge Iron sector had purchased 12,300 MT in the auction, taking G6, G9 and G15 grades of coal in the process.
Among the individual coal buyers, DB Power was marked as the highest coal receiver, followed by Vedanta, Maruti Clean Coal & Power and MB Power.
Leave a Reply