MSTC Limited, on behalf of Indian Oil Corporation Limited (IOCL), has announced an e-auction for selling 70,000 MT of petroleum coke from their Paradip refinery in Odisha, scheduled on 2 Apr’19.
The salient features of this auction are enumerated as follows:
Prospective bidders are required to submit pre-bid earnest money deposit (EMD) amount of INR 10,00,000 to participate in this e-auction irrespective of their intended bid quantity.
Minimum bid quantity for any customer is 10,000 MT.
Reserve price would be declared in live auction.
Delivery period is specified from 3rd April to 3rd May.
Notably, the offered quantity in the current auction is comparatively lower than the quantity of 90,000 MT offered in the previous auction, which was conducted on 27 Feb’19.
In the last auction, a total quantity of 88,000 MT pet coke was sold at a higher price of INR 5,680/MT against the reserve price of INR 5,630/MT.
It is further reported that IndianOil has extended the delivery period of the last auction till 8th April from 30th March, possibly due to lower stock availability at Paradip.
At present, the Indian pet coke demand has evidently picked up, while the overall domestic supply has considerably reduced due to increased consumption for gasification by Reliance Industries.
Moreover, as a relatively lower quantity has been offered in this auction, it is expected to generate more competition amongst potential buyers.
Major cement manufacturers and certain steel producing companies from Odisha, Chhattisgarh and Jharkhand are expected to typically participate in this auction.
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