Western Coalfield Ltd (WCL) has witnessed a revival in demand for coal sales envisaged under spot auction for Oct ’20.
The company had offered 377,000 t coal in the auction held on 6 Oct ’20, of which 127,670 t was sold at a price realization of INR 4676.82/t thus recording gain of 23% over the notified price. This was the highest premium noted for the monthly auctions in this fiscal.
In the previous month, total of 691,000 t coal was put up for sale over the two round of auctions, wherein 322,900 t was booked at a price realization of INR 2484.21/t.
It was the first time an auction was scheduled after CIL had restored upper cap, which implied reserve price being set 10% higher than the notified price. However, there were no signs of unrest in participation, as aggressive bidding was reported for the coal sales.
Key findings:
(a) G8 grade of coal from Silewara colliery received highest bid price of INR 4143/t against the reserve price of INR 2617/t. Detailed source-wise result can be seen here.
(b) Better response was seen for unmixed grade of non-coking coal, where excluding coal from Saoner-III, Penganga, Yekona and New Majri collieries, rest of the lot had attracted bids in range of INR 545-1526/t.
(c) The sole lot of coking coal carrying W-IV grade was sold at the reserve price of INR 3353/t. While no bid was reported for entire 80,000 t coal offered via rail mode of dispatch.
Upcoming auction: The company is set to carry-out special forward auction after a span of 2 months for sale of 4,741,000 t coal on 19 Oct ’20, which would entitle lifting period of three months from Oct ’20 to Dec ’20.
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