SECL’s coal auction held on 21 Jan, 2015 fetched comparatively lower bids. In this auction, bid prices fell by around INR 50-200/MT for few grades.
South Eastern Coalfield Limited (SECL), which had scheduled an e-auction for 1.23 MnT coal on 21 Jan’15, received comparatively lower bids because of buyers’ refusal to pay high prices in the domestic e-auction. A bid for 4000-4300 GCV (G11) grade Coal from Gevra OC (Stock) for 92,700 MT was placed at around INR 1,720/MT against a base price of INR 1,140/MT.
As per a participant, “Bid prices have reduced by INR 50-200/MT against previous auction prices, while, base prices remain same. Presently, buyers are not agreed to pay high prices for domestic coal as imported offers have also declined.
Domestic Vs Imported Prices
Currently, imported material of Indonesian 5200-5300 GCV (3400 GAR) landed on port is costing at around INR 2,500-2,700/MT. Contrastingly, in this auction, domestic material G8 (4900-5200 GCV) from Baroud OC was sold at around INR 2,700-2,900/MT (all royalty & taxes included after bid price).
Currently, South African RB2 (6200 GCV) coal (stock and sale) is being offered at INR 5,200-5,300/MT. Meanwhile, SECL’s current coal auction received highest bid of INR 2,800/MT (G5 sized ROM/5800-6100 GCV) from Rajnagar OC (Stock), with a base price of INR 2,800/MT.
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