India: Coal sales volume drops in latest ECL auction

• Over 120,000 t sold at 27 Nov auction
  
  
• G4 records highest sales among grades
  
  

The latest auction from Eastern Coalfields Limited (ECL), held on 27 November, recorded total sales of 120,300 tonnes (t), marking a significant drop from the 188,800 t sold on 12 November. Besides the decline in overall volume, the auction reflected notable shifts in grade-wise and mine-wise bidding trends.

Key observations

Grade-wise performance

G4 continued to lead in terms of grades, with 57,300 t sold on 27 November at an average bid price of INR 5,555.33/t, slightly higher than the INR 5,098.41/t recorded on 12 November. Notably, this variant is consumed predominantly by metallurgical industries, which require high-grade coal for efficient operations.

G3, absent in the 12 November auction, recorded the second-highest sales volume, with 46,500 t purchased at an impressive average price of INR 6,036.35/t. This was due to its high calorific value, which makes it ideal for use in power generation.

G5 witnessed a slight increase in sales, with 15,500 t sold on 27 November compared to 14,000 t on 12 November. However, the average bid price rose to INR 5,679.59/t from INR 5,065.84/t, suggesting strong demand for this versatile grade.

W03, a new grade included in the auction, saw 1,000 t sold at INR 4,917.14/t. This grade is preferred mainly by industries seeking affordable coal options.

Mine-wise performance

Chitra OC emerged as the top contributor in the 27 November auction, offering and selling 40,000 t at competitive prices.

In contrast, Sonepur Bazari OC, which dominated the 12 November auction with 129,650 t, saw limited sales in the latest event, highlighting a possible shift in buyers' focus to other mines.

Implications for market

The auction showcased an evolving demand landscape. G4 retained its position as the primary choice, given its wide use in the metallurgical and industrial segments, particularly in steelmaking and allied applications. Meanwhile, G3's strong calorific profile made it another standout performer, considering its applications in power generation and other energy-intensive sectors.

This shift suggests diversification in buyer strategies and the evolving distribution pattern of high-grade coal demand across various industries.