India: Over 120,000 t coal sold in recent ECL coal auctions

Eastern Coalfields Limited (ECL) auctions, held on 29 November, 19 December, and 21 December, reflected significant shifts in coal sales trends, marking distinct bidding behaviours compared to the auction held on 26 November. The total sales volume and average bid prices of the auctions highlight evolving preferences among buyers:

• Sales decline: Overall volumes showed a drop from 120,300 t on 26 November to 95,600 t on 29 November, and 34,550 t on 19 December before slightly recovering to 89,200 t on 21 December.
  
  
• Bid price trends: Prices saw sharp shifts, with average bid prices rising from INR 3,209/t on 29 November to INR 5,621/t on 19 December before slightly reducing to INR 5,478/t on 21 December.
  
  

Key observations:

Grade-wise performance

• G4 continues to dominate: The G4 grade, known for its high industrial utility, remained a strong performer across all auctions. On 19th December, G4 recorded 29,550 t sold at an average bid price of INR 5,616/t, slightly above 26th November's INR 5,555/t. The 21 December auction saw even higher sales at 60,500 t, with the average price improving to INR 5,640/t.
  
  
• Emergence of G10, G8, and G3: G10, absent from earlier auctions, contributed the highest quantity on 29th November, with 40,750 t sold at INR 2,067/t, marking it as the most affordable grade. Similarly, G8 emerged with 27,550 t sold on the same date. The 21st December auction introduced G3, which recorded 6,000 t sold at an impressive average bid price of INR 7,062/t, highlighting demand for high-calorific value coal.
  
  
• G5 and G6 observe varying trends: G5 sales fluctuated across auctions, with the highest volume of 22,550 t on 29th November at INR 4,400/t. On 21st December, despite lower sales of 13,000 t, the bid price surged to INR 5,482/t. Meanwhile, G6 sales declined from 4,750 t on 29 November to 9,700 t on 21 December, with bid prices peaking at INR 5,639/t on 19 December but dropping to INR 3,298/t in the subsequent auction.
  
  

Market implications

The auctions underscore evolving demands for specific grades and rising prices for high-calorific-value variants, signalling a more segmented buyer preference as industries align their procurement with operational needs.