South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL has witnessed moderate bids for coal sales conducted via monthly spot auction during Feb’20.
The coal company had fetched average bid price of INR 2844.71/MT against a reserve price of INR 2774/MT for sale of G7 grade of coal. The auction held on 12 Feb’20 had offered 100,000 MT coal from a single lot entitled from Bijari OC, of which the entire volume was booked by the bidders.
In contrast, SECL had floated 2,000,000 MT coal in 20 lots for the auction held in the previous month.
Recovering from the inclement weather, SECL had managed to elevate coal output from its mines but has been dispatching more coal volumes than the actual production in the FY20. Consequently, the company has lowered coal allocation for e-auctions in order to augment FSA supplies for the upcoming peak summer demand.
During the first 10 months of FY20 (Apr’19-Jan’20), SECL has dispatched 115.25 MnT coal, which was marked 4% higher than the corresponding production of 110.69 MnT in the period.
In spite of the moderate response, the recent auction had seen improved bids for the offered coal grade from the previous term. Apparently, bids for G7 coal were noted INR 60-80/MT higher than the reserve price set for the auction.
The same grade of coal in the previous auction was majorly sold at reserve price, while fewer quantities had received bids at a premium of INR 10-20/MT.
Major Coal Receivers:
Sponge Iron manufacturers had procured the highest coal quantity in the auction, securing 39,500 MT coal at a bid price of INR 2846.53/MT. Power utilities had drawn the second-largest quantity of 28,200 MT, followed by traders which had booked 19,800 MT coal.
Among the individual coal buyers, Monnet Ispat and Energy came out on top with purchase of 19,000 MT coal, followed by DB power which had booked 18,200 MT in the auction.
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