SECL’s domestic coal auction again fetched poor response in Mar’16 and 35% material was sold at floor price.
SECL, a largest subsidiary of CIL, was concluded a coal auction on 8 and 9 Mar’16 with total quantity of 2.7 MnT. The response was not much pleasing for the company as only 33% of the quantity was sold due to lack of participation. In addition, about 0.9 MnT coal was sold, of which about 35% material sold at base prices.
SteelMint assessed that since the beginning of 2016, SECL’s coal auction platform is not reflecting with positive hope. The company has been received weak response constantly and again seems even poor in Mar’16 as consumers are not profound to purchase domestic coal on higher prices then global.
Mar’16 coal auction registered a negligible price rise of around INR 100-200/MT for all grades compared to last month. While, prices were more or less stable from couple of months.
However, slowing global demand and bottomed global coal market are the major factors deterring participating companies from couple of months to pay high for comparatively low grade domestic coal.
The ministry had earlier mentioned, “Due to falling domestic coal demand in India, CIL might produce less coal in FY16 then targeted. Production target was 550 MT in FY16, we lack by about 10-15 MnT in this fiscal.”
Big participants in the auction
In the recent auction, out of the total sold quantity, about 67% of coal was brought by top players such as Jindal Power, BALCO, JSPL, Acc Cement, Ambuja Cement, UltraTech Cement, Shri Harjika Enterprises, Monnet Ispat & Energy etc.
• Jindal Power received about 0.2 MnT of coal from Baroud OC (-G-12) and Gare Pelma IV/2&3 OC (G16) with a bid price of INR 1,068/MT and INR 832/MT respectively.
• Bharat Aluminum received total 0.1 MnT of coal from Gevra OC mine. The quantity was brought with winning price of INR 1,220/MT for size G11 ROM coal with a base price of INR 1,140/MT.
• JSPL had brought about 0.1 MT coal from Baroud OC (G12), Gare Pelma IV/2&3 OC (G16), Gevra OC (G11), with a bid price of INR 1,068/MT, INR 852/MT and INR 1,220/MT distinctly.
• Acc Cement brought 40,000 MT material from Gevra OC (G11) size coal at price of INR 1,230/MT with base price of INR 1,140/MT.
| Colliery | Grade | Buyers Name | Quantity | Floor Price | Bid Price |
| Baroud OC | G-12 | Jindal Power | 110,000 | 1,068 | 1,068 |
| Gare Pelma IV/2&3 | G-16 | Jindal Power | 104,900 | 732 | 832 |
| Gevra OC(Stock) | G-11 | Bharat Aluminium | 100,000 | 1,140 | 1,220 |
| Baroud OC | G-12 | JSPL | 65,700 | 1,068 | 1,068 |
| Gevra OC(Stock) | G-11 | Acc Cement | 40,000 | 1,140 | 1,230 |
| Gevra OC(Stock) | G-11 | Ambuja Cement | 40,000 | 1,140 | 1,230 |
| Jampali OC | G-12 | Shri Harjika Ent. | 30,000 | 1,068 | 1,068 |
| Gevra OC(Stock) | G-11 | Ultratech Cement | 30,000 | 1,140 | 1,220 |
| Gare Pelma IV/2&3 | G-16 | Monnet Ispat & Energy | 20,000 | 732 | 852 |
| Gevra OC(Stock) | G-11 | Mittal Trade | 15,000 | 1,140 | 1,230 |
| Jampali OC | G-8 | Nalwa Steel And Power | 15,000 | 2,028 | 2,028 |
| AMGAON OC(Stock) | G-7 | Hind Unitrade | 14,800 | 2,268 | 2,268 |
| Mahan II OCM | G-5 | Brahmanand Minerals | 10,000 | 2,800 | 2,800 |
| AMGAON OC(Stock) | G-7 | Hind Unitrade Pvt Ltd | 10,000 | 2,268 | 2,278 |
| Baroud OC | G-12 | Shri Harjika Ent | 10,000 | 1,068 | 1,088 |
| Gare Pelma IV/2&3 | G-16 | Shri Harjika Ent | 10,000 | 732 | 852 |
| Jampali OC | G-12 | Vardhman Roadlines | 10,000 | 1,068 | 1,068 |
| Gevra OC(Stock) | G-11 | Phil Minerals Benefication | 8,000 | 1,140 | 1,230 |
| Jampali OC | G-8 | Agarwal Fuel | 6,000 | 2,028 | 2,028 |
| Baroud OC | G-12 | Godavari Commodities | 6,000 | 1,068 | 1,088 |
Source: SteelMint
Quantity in MT
Prices in INR
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