Indian Oil Corporation Ltd. (IOCL) (NSE: IOC, BSE: 530965) has completed its petroleum coke auction from Paradip refinery in Odisha on 27 Feb’19.
Details of the auction are enumerated below:
- Quantity offered: 90,000 MT
Quantity sold: 88,000 MT
Reserve price: INR 5,630/MT
Highest bid price: INR 5,680/MT
Delivery Period: 28 Feb’19 – 30 Mar’19
A total quantity of 88,000 MT pet coke was sold against the offer of 90,000 MT in this auction.
The highest bid price of INR 5,680/MT received was INR 50/MT more than the reserve price.
IndianOil has increased the reserve price by INR 120/MT to INR 5,630/MT in the current auction, from INR 5,510/MT in the previous auction which was held on 2 Feb’19.
Notably, in the last auction the highest bid price was INR 1,500/MT more than the reserve price. The highest bid price in this auction is lower by INR 1,330/MT than the highest bid price in the last auction.
Although the offered quantity of 90,000 MT in this auction was relatively higher, almost the entire quantity was sold at higher than the reserve price. This indicates that there is gradual increase in domestic demand and it is expected to continue because the overall domestic availability has reduced due to increased consumption of pet coke in the gasification units of Reliance Industries (RIL).
The successful bidders are mostly major cement companies from Chhattisgarh and Odisha. The total quantity allocated to Chhattisgarh is 66,000 MT out of 88,000 MT. The bidders are required to complete the remaining formalities and uplift their respective allotted quantities within the delivery period, specified as per terms of the auction.
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