SECL’s June Coal Auction Sold 50% Quantity, Price Unchanged

Only 50% coal was sold in the monthly coal auction by SECL in Jun’16. While, bid prices were more or less same as previous auction.

SECL’s domestic coal auctions have again reported poor response in Jun’16, which doesn’t seems much pleasing for the company since last 8 months. While in this auction, bid prices were more or less unaltered and about 50% quantity was sold at base price to top 10 participants. Besides, few grades received higher bids of about INR 100-200/MT over the base price.

Coal India’s largest subsidiary, SECL had concluded coal auctions in 4 different schedules on 13, 17, 24 and 27 of Jun’16 with total quantity of over 1.6 MnT. The auction response was not much attractive on the wake of slowing buying interest in India amid onset of monsoon season.

Big participants in the auction
In the latest auction, out of the total sold quantity, upto 50% quantity was brought by Indian coal traders and rest quantity goes to the Power, Sponge, Cement, Aluminium etc. Although participants such as BALCO, Korba West Power, Prakash Industries, Godawari Power, Sarda Energy, Ultratech Cement, Spectrum Coal etc emerges as the big players in the auction.

1. Bharat Aluminum received total 0.2 MnT of coal from two different mines namely Gevra OC (Stock/Bunker) (114,600 MT, G11) and Dipka Expn (Stock) (72,550 MT, G10). The quantity was brought with winning price of INR 1,164/MT and INR 1,456/MT, with a base price of INR 1,164/MT and INR 1,416/MT respectively.
2. Korba West Power had brought about 45,200 MT coal at the floor price from Gare Pelma IV/2&3 (G16), with a bid price of INR 768/MT.
3. Prakash Industries brought 55,000 MT coal at base price from three different mines named as Dipka Expn (G10), Vijay West (Stock, G5), and Rajgamar 4&5 (G5) at price of INR 1,476/MT, INR 2,750/MT and 2,750/MT respectively.
4. Hind Unitrade took about 10,500 MT of coal from Amgaon OC (G7), with a bid price of INR 2,634/MT on base price of INR 2,304/MT.

Source: SteelMint
Quantity in MT
Prices in INR

Low grade domestic coal with higher priced in e-auctions, periodically being conducted by SECL is the major reason behind depressing domestic auction platform.