Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has conducted its second online auction of pet coke in this month from Paradip refinery in Odisha on Wednesday, 25th Sep’19, wherein the offered quantity was 50,000 MT.
The reserve price was declared during the live auction as INR 4,620/MT.
A quantity of 40,000 MT was sold at the reserve price of INR 4,620/MT, out of the total offered quantity of 50,000 MT. Thus, a quantity of 10,000 MT was left over from this auction.
Notably, IndianOil had conducted its first pet coke auction for this month from Paradip refinery on 6th Sep’19 for 40,000 MT. The entire quantity was sold at reserve price of INR 4,510/MT. The reserve price was increased by INR 20/MT over the previous auction held on 23rd Aug’19.
In the current auction, the reserve price was increased by INR 110/MT over last auction held on 6th Sep’19. Further, the quantity on offer was also increased from 40,000 MT to 50,000 MT. In all probability; this increase in the reserve price may be the reason for such relatively poor response in this auction. Also, it appears that the demand by cement industries is yet to pick up although the monsoon season has passed.
In the current auction, major cement manufacturing companies from Chhattisgarh received 10,000 MT, while the remaining 30,000 MT is allotted to cement manufacturers in Odisha and Jharkhand.
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