Pet Coke: IndianOil concludes auction for outside state consumers

Indian Oil Corporation Ltd. (NSE: IOC) has concluded electronic auctions of RPC (Raw Petroleum Coke) from its various refineries on 13th and 14th Sep’19 for outside state consumers.

Refinery-wise detailed breakups of quantities sold in the auctions are enumerated as follows:

These auctions attracted mixed responses from the participants. While an approximate quantity of 13,700 MT was sold at Bongaigaon refinery, no bid was received at Digboi and Koyali refineries.

Considering both Within-State and Outside-State auctions together, the total quantity on offer was 103.9 thousand metric tons (TMT), out of which 36.5 TMT was sold in Within State auction and 13.7 TMT was sold in Outside State auction, totaling 50.2 TMT. Thus, an overall quantity of around 48.3% of stock was sold out in both the rounds of auction.

Notably, maximum stock was sold at Bongaigaon refinery – 6.4 TMT in Within State auction and 13.7 TMT in Outside State auction, totaling 20.1 TMT. This indicates that approximately 79% was sold out of the offered quantity of 25.5 TMT.

It is observed that the reserve prices at Bongaigaon and Barauni refineries were reduced by INR 2,510/MT and INR 1,510/MT respectively, as compared to the last auction conducted in August. However, there was no reduction in reserve price at Koyali refinery. Possibly, this sharper reduction in reserve price at Bongaigaon was the main reason for relatively better response by calciners located in other states.

It is also gathered from market participants that Rain CII Carbon, the largest RPC consumer in India based at Vizag in Andhra Pradesh, bought the maximum quantity of 6,500 MT, which is almost 50% of the stock sold from Bongaigaon. Consumers located in Bihar, West Bengal and other states bought the remaining quantity.