Indian Oil Corporation Ltd. (IOCL) (NSE: IOC, BSE: 530965) has completed its petroleum coke auction from Paradip refinery in Odisha on 2 Feb’19.
The entire offered quantity of 70,000 MT pet coke was sold above the reserve price in this auction. The highest bid received was INR 1500/MT more than the reserve price, which is the all-time highest increase in bid price over reserve price, since beginning of the auction system at Paradip.
This indicates that lately there has been a sharp increase in the domestic demand, possibly due to the reason that the overall domestic availability has reduced, as Reliance Industries has shut down a Delayed Coker Unit (DCU) in its Jamnagar Refinery DTA and increased consumption in its gasification units.
IndianOil has increased the reserve price by INR 90/MT to INR 5,510/MT in the current auction from INR 5,420/MT in the last auction which was held on 2 Jan’19.
Notably, in the last auction also, the entire quantity of 70,000MT was sold above the reserve price at INR 5,510/MT.
The successful bidders are mostly major cement companies from Chhattisgarh and Odisha, who are required to uplift their allotted quantities within the delivery period, specified as 2 Feb’19 to 4 Mar’19.
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