India: Allocated volumes rise at SECL's end-Dec'24 coal auctions

• Over 1.4 mnt booked during 23-28 Dec auctions
  
  
• Higher allocated volumes show improved supply
  
  

South Eastern Coalfields Limited (SECL) conducted several coal auctions over 23-28 December 2024. The total volumes allocated increased to 1.48 million tonnes (mnt) in end December from 1.26 mnt at the auctions held on 25 and 27 November.

These auctions exhibited diverse trends in allocations and prices, with the rise in allocated volumes reflecting improved supply for several coal grades.

Allocated volumes

On 23 December, 1.14 million tonnes (mnt) of coal were allocated across multiple grades, including G10 (0.604 mnt), G6 (0.113 mnt), and G8 (0.12 mnt). The G6 grade, offered from Gayatri mines, fetched stable bids against the 27 November auction.

On 24 December, 0.75 mnt of coal were offered.

The 27 December auction saw 0.327 mnt of coal allocated, with G5 fetching the highest bid of INR 4,323/t for a total allocation of 0.016 mnt. G8, with an allocation of 0.1072 mnt, was secured at an average price of INR 2,789.77/t. G11, of which 0.204 mnt were offered, fetched a winning price of INR 1,743.45/t.

On 28 December, 21,250 tonnes (t) of coal were allocated, with G7 (15,000 t) and G9 (6,250 t) fetching average winning prices of INR 3,691.67/t and INR 1,795/t, respectively.

Top bidders

Prominent bidders included Bharat Aluminium Company Ltd. (BALCO), which secured significant allocations. BALCO's procurements included 0.108 mnt on 23 December and 34,000 t on 27 December. Other major participants included Rama Coal Washeries Private Limited and BS Sponge Private Limited.

Outlook

SECL's auctions showcased higher allocations and a variety of coal grades being offered, which indicates market stability and ensured diverse participation.