India: SECL’s latest auction sees 0.8 mnt of non-coking coal sold

• G11 sees highest allocation, bids edge down
• BALCO emerges largest buyer with 154,000 t

South Eastern Coalfields Limited (SECL) conducted a spot e-auction on 12 February 2025, with a total of 800,700 tonnes (t) of non-coking coal allocated across various grades. The auction witnessed strong buyer interest for mid-to-lower grades of coal, with G11 securing the highest allocation. While most grades saw price corrections, others commanded higher bids, reflecting sector-specific demand variations.

Grade-wise comparison with 23 Jan auction

• G11: G11 remained the highest allocated grade in both the auctions. Notably, 604,000 t were allotted on 12 February at an average bid price of INR 1,868/t, slightly lower than in the 23 Jan auction, where 474,000 t were allocated at INR 1,904/t. Steady demand for this grade, primarily from power and cement players, indicates its essential role in bulk industrial usage.
• G6: On 12 February, 63,000 t were allocated at an average bid price of INR 4,021/t, marking an increase from the 23 Jan auction, where 260,650 t were allotted at INR 3,867/t. The rise in bids suggests heightened demand from industries requiring higher energy content, including sponge iron and non-power sectors.
• G15: With 32,000 t allocated at the 12 February auction, G15 recorded a bid price of INR 876/t.
• G16: The auction on 12 February allocated 100,000 t of G16 at INR 777/t. This grade was not offered in the 23 January auction.
• G8: Despite a minor allocation of 1,700 t on 12 February, G8 fetched a bid price of INR 2,296/t, notably lower than 23 January’s INR 2,931/t. The price decline suggests reduced competition for this grade, possibly due to ample alternative supply in the market.

Buyer participation: BALCO, Jhabua Power lead

• Bharat Aluminium Company Limited (BALCO) secured the highest quantity of 154,000 t.
• Jhabua Power Limited followed with 100,000 t, underscoring its strong dependence on SECL’s supply.
• Rama Coal Washeries Private Limited secured 71,850 t, ensuring raw material availability for its washing operations.

Market impact

Domestic thermal coal prices remained stable following the auction, with 4500 GCV coal at INR 5,000/t and 5000 GCV at INR 5,900/t, both unchanged w-o-w.

The frequent auctions by Coal India subsidiaries, including SECL, have led to better coal availability in the domestic market, influencing buyer preferences. With increased domestic coal supply at competitive prices, demand for imported material is witnessing a downturn, leading to a decline in tags of the same. Buyers are shifting away from costlier imports, preferring local coal sources.