SECL’s domestic coal auction prices remain flat again in Oct’16 owing to lower bid prices. About 35% coal was sold at base prices out of the total sold quantity.
SECL, the largest subsidiary of CIL, conclude its monthly coal auction on 4 Oct’16 with a total quantity of about 1.4 MnT. The response was not much pleasing as only 70% (0.97 MnT) material sold in the auction owing to lack of participation.
In addition, about 0.5 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. On the other side, current hike in global coal prices may lend some support in domestic coal auction in near future.
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, Jindal Power, JSPL, Indermani Minerals, Hind Energy, Hindalco, Monnet Ispat & Energy, Godawari Power and Ispat etc. About 50% quantity was brought by top 10 participants in this auction.
1. Bharat Aluminum received total 0.18 MnT of coal from two different mines namely Gevra OC stock (150,000 MT, G11) & Chhal OC (30,000 MT, G13). The quantity was brought with winning price of INR 1,654/MT and INR 1,032/MT respectively.
2. JSPL received about 0.2 MnT coal from Chhal OC (100,000 MT, G13) and Gare Pelma IV/2&3 (119,850 MT, G11), with a bid price of INR 1,032/MT and INR 768/MT respectively. The all material from both mines were sold at base price.
3. Jindal Power had brought about 0.1 MT coal from Gare Pelma IV/2&3 (G14) at INR 936/MT on base price.
4. Indermani Minerals receives 72,500 MT material from three different mines namely Gevra OC (41,500, G11), Chhal OC (25,000, G13) and Gare Pelma IV/2&3 (6,000 MT, G14) at price of INR 1,604/MT, INR 1,032/MT and INR 956/MT individually.
| Company | Mines | Grade | Qty | Base,Price | Bid,Price | Category |
| BALCO | Gevra OC | G11 | 150,000 | 1,164 | 1,654 | Aluminium |
| Jindal Power | Gare Pelma IV/2&3 | G14 | 100,000 | 936 | 936 | Power |
| JSPL | Chhal OC | G13 | 100,000 | 1,032 | 1,032 | Steel |
| JSPL | Gare Pelma IV/2&3 | G16 | 44,000 | 768 | 768 | CPP |
| Indermani Minerals | Gevra OC | G11 | 41,500 | 1,164 | 1,604 | Trader |
| JSPL | Gare Pelma IV/2&3 | G14 | 31,150 | 936 | 936 | CPP |
| BALCO | Chhal OC | G13 | 30,000 | 1,032 | 1,032 | Aluminium |
| Hind Energy | Chhal OC | G13 | 30,000 | 1,032 | 1,032 | Trader |
| Godawari Power | Gevra OC | G11 | 25,000 | 1,164 | 1,654 | CPP |
| Century Paper | Gevra OC | G11 | 20,000 | 1,164 | 1,654 | Paper |
| Singhal Enterprises | Gare Pelma IV/2&3 | G14 | 20,000 | 936 | 946 | Sponge |
| Hindalco | Shiwani UG (Stock) | G5 | 15,000 | 2,750 | 2,750 | CPP |
| Hindalco | Bhatgaon UG (Stock) | G4 | 14,900 | 3,000 | 3,000 | CPP |
| Monnet Ispat | Baroud OCM | G8 | 11,000 | 2,040 | 2,180 | Sponge |
| Hindalco | Mahamaya UG | G4 | 10,700 | 3,000 | 3,000 | CPP |
| Paras Power | Gevra OC | G11 | 10,000 | 1,164 | 1,654 | Trader |
| Shri Shyam Ispat | Gare Pelma IV/2&3 | G14 | 10,000 | 936 | 946 | Sponge |
| Hind Unitrade | Gayatri UG (Stock) | G6 | 9,050 | 2,736 | 2,856 | Trader |
Source: SteelMint
Quantity in MT
Prices in INR
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