SECL’s domestic coal auctions have been receiving poor response since June’15.
South Eastern Coalfields Limited (SECL), the largest coal producing subsidiary of CIL, had conducted an e-auction for 2.1 MnT coal in Aug’15, scheduled on different dates (10, 14, 18, 29 Aug’15) with different quantities. Auction prices were reduced at an average INR 200-300/MT. However, only 1.2 MnT coal was sold in this auction witnessed a marginal price fall owing to lack in participation from buyers for domestic coal.
Domestic e-auction prices have been declined constantly since June’15. Rise in CIL’s supply, coupled with weak demand and bearish global outlook, is hampering domestic coal auction.
Big participants in the auction
In this auction, the country’s big companies like BALCO, Jindal Power, DB Power, Godawari Power & Ispat, Prakash Industries and Monnet Ispat etc bought around 60% of the coal offered.
• Jindal Power purchased 0.3 MnT coal, the largest bid quantity in Aug’15 at an average of INR 1,163/MT from different mines such as Gare Pelma IV/2&3, Chhal OC, Baroud OC, Jampali OC. The company had bid for G14 & G12 size coal.
• Bharat Aluminum received total 0.18 MnT of coal from four different mines, Gevra OC (stock) with winning price at INR 1,140/MT (117,500 MT) for size G11 ROM coal (4000-4300 GCV) and from Manikpur OC (Stock) at INR 1,088/MT(52,250 MT) for size G12 ROM coal.
• DB Power bid for different mines such as Chhal OC- G12 grade, Manikpur-G12 grade, Baroud OC G8 grade for about 0.1 MnT Coal. The company received 50,000 MT coal at base price INR 2,028/MT for Baroud OC- G8 grade.
Domestic Vs Imported Prices
At present, imported stock & sale material of Indonesian 3800 GAR (5500 GCV KCAL/Kg) coal is being offered at INR 2,600-2,650/MT with all duties and clearance included. Contrastingly, in this auction domestic material G8 (4900-5200 GCV) from Baroud OC was sold at INR 2,750-2,800/MT (all royalty & tax included after bid price).
Currently, South African RB2 (6200 GCV) coal (stock and sale) is being offered at INR 4,300-4,500/MT at different Indian ports. Meanwhile, SECL’s current coal auction has received an average bid of INR 3,675-3,700/MT (Royalty and taxes excluded) (G5 sized ROM/5800-6100 GCV) from Mahan II OC, with base price of INR 2,800/MT.
| Date | Consignee Name | Mines | Grade | Quantity | Floor Price | Bid Price | Category |
| 18-Aug-15 | BALCO | Gevra OC(Stock) | G11 | 117,500 | 1,140 | 1,140 | Power |
| 18-Aug-15 | Prakash Industries | Gevra OC(Stock) | G11 | 22,000 | 1,140 | 1,160 | Sponge |
| 14-Aug-15 | Jindal Power | Gare Pelma IV/2&3 | G14 | 121,000 | 888 | 1,158 | Power |
| 14-Aug-15 | DB Power | Baroud OC | G8 | 50,000 | 2,028 | 2,028 | Power |
| 14-Aug-15 | Jindal Power | Chhal OC | G12 | 115,300 | 1,068 | 1,319 | Power |
| 14-Aug-15 | Monnet Ispat & energy | Gare Pelma IV/2&3 | G14 | 23,000 | 888 | 1,178 | Sponge |
| 18-Aug-15 | Reliance Cement | Sharda (High Wall) (Stock) | G7 | 10,000 | 2,268 | 2,318 | Cement |
| 29-Aug-15 | Adhunik Metaliks | Mahan II OC | G5 | 5,750 | 2,800 | 2,800 | Sponge |
| 29-Aug-15 | Mohit Minerals | Dipka Expn(Stock) | G10 | 4,000 | 1,392 | 1,712 | Trader |
Quantity in MT
Price in INR
Source: SteelMint
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