India: Around 140,000 t of coal sold in Eastern Coalfields Limited auction

Eastern Coalfields Limited (ECL) held auctions on the 16th, 18th and 20th of January 2025 which reflected strong demand for specific grades of coal and varying price trends. The total auctioned quantity and grade-wise bid price averages highlight market preferences:

Sales performance:

• A total of 136,800 t of coal was sold across these auctions, indicating steady demand.
  
  
• The highest sales volume was recorded on 18 January, with 64,500 t, followed by 16 January (36,300 t) and 20 January (36,000 t).
  
  

Grade-wise performance and pricing trends

• G4 grade dominated the auctions:

  The G4 grade emerged as the highest-performing coal type, showcasing a consistent increase in bid quantities and prices. On 16 January, 31,500 t of G4 grade were sold at an average bid price of INR 7,427/t. On 18 Jan'25, the volume surged to 51,500 t, with an average bid price of INR 6,735/t. A similar trend was observed on 20 Jan'25, with 7,000 t auctioned at a higher average price of INR 8,254/t
  
  

• Performance of G5 grade:

  Sales of the G5 grade coal highlighted strong buyer interest, with the highest quantity of 23,000 t sold on 20 January at an average bid price of INR 6,904/t. The auction on 18 Jan'25 recorded 8,000 t of G5 grade coal sold at INR 7,182/t, which was a notable improvement over 16 January when 3,800 t were sold at an average price of INR 5,574/t.
  
  

• Limited activity for G6 grade:

  The G6 grade saw modest participation, with 1,000 t auctioned on 16 Jan'25 at an average price of INR 5,791/t, and 5,000 t auctioned on 18 Jan'25 at INR 5,798/t.
  
  

• Emergence of demand for G3 grade coal:

  The auction on 20 Jan'25 introduced the G3 grade, with 6,000 t sold at an average bid price of INR 5,917/t, indicating a growing interest in high-calorific value coal.
  
  

Market trends:

The auctions revealed a significant preference for high-calorific coal grades such as G4, with consistent price appreciation. Although the G5 grade experienced fluctuations in pricing, its total bid volumes indicated strong demand. Meanwhile, the limited offerings of the G6 grade suggest specific buyer targeting, while the emergence of G3 indicates a gradual increase in interest for higher-calorific options.