SECL’s domestic coal auctions have again witnessed lower bids in Aug’16. About 32% coal quantity was sold at base prices out of the total sold quantity that is 2.5 MnT.
SECL, the largest subsidiary of CIL, conducted its monthly coal auction on different date’s i.e., on 3 Aug, 8 Aug, 16 Aug, 20 Aug and 24 Aug’16. The response was not so attractive as only 2.5 MnT of the quantity was sold due to lack of participation.
In addition, about 0.8 MnT material was sold at base price. In this auctions, only few grades received higher bids of about INR 100-300/MT over the base price. While, the bid prices remained stable as compared to last month for different grades and mines.
SteelMint assessed that since the beginning of 2016, SECL’s coal auction platform is getting poorer on the wake of increased domestic supply that is cheaper in quality. Alongside falling domestic demand in monsoon, had led again distressful coal sales in Aug’16.
Moreover, the monthly auction was not much attractive on the wake of slow buying interest in India amid monsoon season. About 90% quantity was brought by top 10 participants in this auction.
Big participants in the auction
In the recent auction, out of the total sold quantity, the large quantity was brought by top players such as BALCO, DB Power, Jindal Power, KSK Mahanadi Power, GMR Chhattisgarh Energy, Korba West Power, Godawari Power and Ispat etc.
- DB Power received about 0.6 MnT coal from Baroud OCM (360,000 MT G13) and Kusmunda OC (261,000 MT, G11), with a bid price of INR 792/MT and INR 1,161/MT respectively on 20 Aug’16 auction. Base price was at INR 792/MT and INR 891/MT respectively.
- Bharat Aluminum received total 0.25 MnT of coal from three different mines namely Manikpur OC (50,000 MT, G12), Kusmunda OC (80,000 MT, G11) and Gevra OC stock & Gevra OC Stock/Bunker (72,000 MT & 50,000 MT, G11). The quantity was brought with winning price of INR 1,092/MT, INR 1,181/MT and for Gevra mines at INR 991/MT & INR 1,164/MT respectively.
- Jindal Power had brought about 0.2 MT coal from Baroud OCM (G13) and Gevra OC (G11) at INR 812/MT & INR 991/MT individually.
- KSK Mahanadi Power brought 0.8 MnT material from Kusmunda OC (0.7 MnT, G11), Gevra OC (0.2 MnT, G11) mines at price of INR 1,181/MT, INR 991/MT, with a base price of INR 891/MT.
| Company | Colliery | Grade | QTY | Floor,Price | Bid,Price | Sector |
| DB Power | Baroud OCM | G13 | 360,000 | 792 | 792 | Power |
| Korba West Power | Baroud OCM | G13 | 164,000 | 792 | 792 | Power |
| Jindal Power | Gevra OC (Stock) | G11 | 160,000 | 891 | 991 | Power |
| GMR Chhattisgarh Energy | Gevra OC (Stock) | G11 | 132,000 | 891 | 991 | Power |
| KSK Mahanadi Power | Kusmunda OC (Stock) | G11 | 100,000 | 891 | 1,181 | Power |
| Bharat Aluminium | Kusmunda OC (Stock) | G11 | 80,000 | 891 | 1,181 | Power |
| Godawari Power & Ispat | Gevra OC | G11 | 20,000 | 1,164 | 1,164 | CPP |
| N R Ispat & Power | Gevra OC | G11 | 12,000 | 1,164 | 1,164 | Steel |
| Hind Unitrade | Rehar UG (Stock) | G 6 SLK | 10000 | 2,760 | 2,760 | Trader |
| Prakash Industries | Vijay West (Bunker) | G5 | 9,500 | 2,750 | 2,950 | Sponge |
| Monnet Ispat & Energy | Vijay West (Bunker) | G5 | 5,000 | 2,750 | 2,970 | Sponge |
| Agarmin Coal | Mahan II OC (Stock) | G5 | 5,000 | 2,750 | 2,750 | Trader |
| Bharat Ben. & Power | Gevra OC | G11 | 5,000 | 1,164 | 1,164 | Trader |
Source: SteelMint
Quantity in MT
Prices in INR
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