South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL, has received overwhelming response in its monthly coal sales via e-auction.
The coal company has seen the entire lot of 1,209,800 MT coal sold under the Dec’18 spot e-auction, which was recently concluded on 17 Dec’18.
Coal sales via e-auction is a monthly affair wherein a wide range of industry participants including traders are entitled to procure coal as per their requirement, which do not have a designated fuel supply agreement with CIL.
The enthusiastic reaction to the SECL’s spot auction was long coming as the coal company had not floated any coal auction for the past two months. Besides, the last auction in Sep’18 had seen only 153,000 MT offered for coal sales.
In the need of time, SECL had come up with a new auction in Dec’18, wherein the offered quantity was raised nearly 8 times of that seen in the previous term.
Insights from the E-Auction Results:
All the 20 lots of coal offered in the spot auction were booked above their respective base price, with coal having lower energy content witnessing higher premiums.
Notably, the largest share of coal offered was from G15 and G16, which are lower in energy content, but had garnered higher premium in the auction.
The 5000 MT lot of G11 grade of coal offered from Bangwar, had fetched the highest premium of 229%, where the lot was booked at an average price of INR 4635/MT, against the base price of INR 1410/MT.
Highest bid of INR 6515/MT was recorded for G5 grade of coal offered from Mahan Opencast mine.
Mine-wise Summary of Coal Sales in Dec’18 E-Auction
| Mine/Source | Grade | Size | Base Price | Average Booking Price | Quantity Offered |
| Bagdeva | G5 | STM | 3609 | 5744 | 2500 |
| Mahan OCM | G5 | ROM | 3285 | 6490 | 10000 |
| Gayathri UG | G5 | ROM | 3285 | 6230 | 10000 |
| Mahamaya UG | G5 | ROM | 3285 | 5620 | 10000 |
| Surakachar 3&4 | G5 | ROM | 3285 | 5390 | 3300 |
| Rehar UG | G6 | ROM | 3029 | 6024 | 10000 |
| Sharda OCM | G6 | ROM | 3029 | 5674 | 10000 |
| Rajendra UG | G7 | SLK | 2810 | 5265 | 4000 |
| Sinhali | G7 | SLK | 2810 | 4600 | 10000 |
| Amadand UG | G7 | ROM | 2774 | 5519 | 5000 |
| Khairha UG | G7 | ROM | 2774 | 5069 | 10000 |
| Rani Atari | G7 | ROM | 2774 | 4579 | 5000 |
| Mahan-II OC | G9 | ROM | 1642 | 4007 | 20000 |
| Bangwar UG | G11 | SLK | 1410 | 4635 | 5000 |
| Balrampur UG | G13 | ROM | 1176 | 2811 | 15000 |
| Gare Palema IV/2 & 3 | G14 | ROM | 1077 | 2742 | 30000 |
| Chhal OC | G14 | ROM | 1077 | 2622 | 50000 |
| Jampali OC | G15 | ROM | 850 | 1980 | 200000 |
| Chhal OC | G16 | ROM | 725 | 2365 | 100000 |
| Gare Palema IV/2 & 3 | G16 | ROM | 725 | 1645 | 700000 |
| Total | 1,209,800 | ||||
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
Major Coal Receivers:
Vedanta Ltd had taken highest coal quantity to the tune of 380,650 MT, followed by Jindal Power (121,800 MT), MB Power (78,450 MT), and TRN Energy (42,500 MT).
Despite, power producers toppling the list of major coal receivers, it was the individual traders which had major share in total coal sales.
Traders had procured 381,350 MT coal, captive power plants came in second followed by the power utilities. Altogether, they had taken more than 90% of the total coal offered in the auction.
CIL’s Price Realisation in E-Auction:
Coal India’s e-auction price realisation have been steadily rising ever since the country had grappled with supply tightness.
The coal company had noted 106 MnT coal sales via auctions. However, during the first half of FY19 (Apr’18-Sep’18), the coal company has only marked sales of 37.09 MnT.
Moreover, volume in e-auction during the second quarter had dropped 9% Q-o-Q to 17.68 MnT compared with 19.41 MnT in Q1 FY18.
Subsequently, the effect of low coal supplied in e-auction was in turn reflected on CIL’s price realisation which has increased 8% Q-o-Q to INR 2592/MT at the end of second quarter (Jul’18-Sep’18).
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