South Eastern Coalfield Ltd (SECL), CIL’s largest coal producing subsidiary has concluded its monthly spot auction on 29 Jan’19.
The company had floated 1,160,000 MT coal for sale, comprising of grades ranging from G12 to G17. Unlike the previous month’s auction, the company has offered the entire quantity in 5 lots from two of its mines namely- Gare Palema IV/1 and Gare Palema IV/2 & 3.
The offered quantity in Jan’19 auction was also slightly lower that from Dec’18, wherein the coal was offered in 20 lots from various mines. However, like the previous term, SECL had witnessed an all out sale in Jan’19 as well.
As per the data maintained by CoalMint Research, SECL had fetched an average bid price of INR 1322.46/MT in Jan’19 auction, which was nearly 81% more than the average reserve price of INR 731.38/MT.
| Mine | Grade | Size | Base Price | Average Bid Price | Quantity Sold |
| Gare Palema IV/1 | G12 | ROM | 1276 | 3205.4 | 25,000 |
| G15 | ROM | 850 | 1639.71 | 35,000 | |
| G17 | ROM | 644 | 1228.99 | 350,000 | |
| Gare Palema IV/2 & 3 | G14 | ROM | 1077 | 1913.87 | 50,000 |
| G16 | ROM | 725 | 1243.84 | 700,000 | |
| Total | 1,160,000 | ||||
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
Coal Sale from all the lots had received higher premium than the corresponding reserve price, notably no deals were reported at the base price.
The highest bid price was noted for G12 grade, which indeed was the premium coal among the rest, in terms of calorific value. The bid price for the coal was nearly 2.5 times higher than the corresponding reserve price, recorded at INR 3205.4/MT.
SECL’s coal sale via spot e-auctions has gathered overwhelming response among the buyers in recent time, as a result of the steady rise in coal demand. The coal company had previously garnered 126% premium in its Dec’18 spot auction.
Major Coal Receivers in Jan’19 Auction:
Highest coal share was taken by the traders in the Jan’19 auction followed by the power sector. Together they had accounted for nearly 87% of the total volume.
Sponge Iron and Aluminium producers were the other major coal receivers.
Among the individual buyers, Jindal Power bought the largest coal volume in the auction, marked at 237,250 MT. Indramani Mineral (156,300 MT), DB Power (110,000 MT), TRN Energy (85,000 MT) and SKS Power (60,000 MT) were the other major coal receivers.
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