India: Nearly 300,000 t of coal fetch bids in SECL's latest auction

• Allotted volumes drop 70% in latest auction
  
  
• UltraTech Cement emerges as highest bidder
  
  

South Eastern Coalfields Limited (SECL) conducted a coal auction on 25 November 2024, in which 296,850 tonnes (t) were booked. UltraTech Cement emerged as the highest bidder with 17,750 t, followed by Bharat Aluminium Company (17,150 t) and Sree Metaliks (15,000 t).

Compared to SECL's previous auction, held on 19 November, the latest reflects significant shifts in coal market dynamics, marked by a sharp decline in offered and allocated volumes.

Allocated, offered volumes drop sharply

The total volume of coal allotted witnessed a steep drop to 296,850 t on 25 November from 1,097,850 t on 19 November - a decline of 73%. The reduction was primarily due to the lower supply of key grades such as G-10 and G-11, which had contributed significantly to the earlier auction. While 62.4 million tonnes (mnt) of coal were offered in the 19 November auction, this figure shrank to 19.7 million tonnes (mnt) for the 25 November event, underscoring constrained supply conditions.

Bid price analysis

High-demand grades such as G-6 and G-8 played a significant role in the recent auction.

• G-6 grade ROM: 185,000 t of this premium grade fetched an average bid of INR 3,917/t in the 25 November auction, showcasing robust demand for it.
  
  
• G-8 grade ROM: The average winning bid for this versatile grade was INR 4,004/t in the 25 November auction; 46,850 t fetched bids.
  
  

Notably, SECL's coal output was recorded at 83.9 mnt in April-October 2024, down by 8.6% y-o-y.