India: ECL auction participation weakens; buyers favour higher-grade coal

• Allocations halve from previous auction
  
  
• Buyers favour premium coal grades
  
  

Eastern Coalfields Ltd (ECL) allocated 51,950 tonnes (t) of coal in its e-auction held on 16 June 2026 under the revised Coal India Ltd (CIL) e-auction scheme, against an offered quantity of around 854,150 t. The allocation ratio stood at 6.1%, down sharply from 13.3% in the company's previous auction held on 11 June.

Total allocations declined by 54,450 t from 106,400 t in the earlier sale, reflecting subdued spot demand and continued cautious procurement despite abundant coal availability.

G4 coal leads allocations and premiums

G4 coal emerged as the best-performing grade in the 16 June auction, accounting for 27,000 t, or over half of total allocations. The grade achieved an average weighted price of INR 6,346/t, towards the upper end of the INR 5,061-6,730/t price range recorded in the 11 June auction, and commanded a premium of INR 2,789/t (78%) over its notified price of INR 3,557/t.

Among the major buyers in the segment, Ranisati Coal Carriers Pvt Ltd secured 3,800 t, followed by Satyam Smelters Pvt Ltd with 2,500 t, Shyam Steel Industries Ltd with 2,000 t, and Shree Enterprises with 1,500 t.

G3 realisations strengthen despite lower volumes

G3 coal recorded allocations of 6,000 t at an average bid price of INR 6,043/t, up by INR 1,070/t (21.5%) from INR 4,973/t discovered in ECL's 11 June auction. The latest price represented a premium of INR 2,324/t (62%) over the notified price of INR 3,719/t, indicating stronger bidding intensity despite lower allocation volumes.

While allocations fell sharply from 35,000 t in the 11 June auction, price realisations improved significantly from INR 4,973/t, indicating stronger bidding intensity for limited premium-grade availability.

Key allocations in the segment included 1,150 t to Ranisati Coal Carriers Pvt Ltd and 1,000 t to Shree Enterprises.

G11 clears at notified price

G11 coal accounted for 10,750 t of allocations at an average bid price of INR 2,154/t, unchanged from the price discovered in ECL's 11 June auction. The grade cleared at its notified price, indicating limited competitive bidding and continued weak demand for lower-grade coal.

Major allocations were secured by Bhagwati Enterprises (3,000 t), Mahadev Enterprises (1,500 t), Shakti Ventures (1,000 t) and Apollo Energies (1,000 t).

Participation in G12 and G13 grades remained negligible, with only marginal quantities allocated despite sizeable availability.

Moderate interest in G5 coal

G5 coal secured allocations of 5,000 t at an average price of INR 4,104/t, fetching a premium of INR 829/t (25%) over its notified price of INR 3,275/t.

The grade was primarily allocated to S. S. Enterprises, which secured 3,000 t, and Ratan Coal Suppliers Pvt Ltd, which received 2,000 t.

Shift in buyer preference evident

The previous auction on 11 June was driven by strong participation in G9 coal, which recorded allocations of 38,600 t against 44,000 t offered at its notified price. In contrast, the latest auction witnessed a clear shift towards premium grades, particularly G4 and G3 coal, which commanded substantial premiums over notified prices.

The outcome suggests that buyers remain highly selective, focusing on superior-quality coal for immediate operational requirements while avoiding broad-based procurement amid comfortable inventory levels and subdued market demand.