India: ECL auction records allocations for 106,400 t of non-coking coal amid subdued buyer participation

• Average bid for G3 declines by 34%, but allocations rise sharply
  
  
• G9 logs highest allocation, over 38,000 t cleared at notified price
  
  

Eastern Coalfields Ltd (ECL) allocated 106,400 t of coal in its e-auction held on 11 June 2026 against an offered quantity of nearly 0.8 mnt, translating into an allocation ratio of just 13.3%. The outcome reflected weak spot demand and cautious procurement behaviour despite substantial coal availability.

The offer basket was heavily skewed towards Rajmahal-origin lower grades. Rajmahal OC and Hura C OC together accounted for around 0.78 mnt of the total quantity on offer, primarily comprising G11, G12, and G13 coal through road mode. However, buyers showed limited appetite for these grades.

Compared with ECL's early-June auctions, buyer preference shifted notably across grades. G3 coal witnessed a sharp correction in realisations, with the average bid price declining by INR 2,538/t (33.8%) to INR 4,973/t in the 11 June auction from INR 7,511/t recorded during the 3-5 June sales. However, allocations increased significantly to 35,000 t from 6,000 t, indicating that improved availability and the replacement of the withdrawn Chitra G4 offer with G3 material attracted stronger participation at lower price levels.

Meanwhile, G9 coal emerged as the standout performer in the latest auction, with 38,600 t allocated against 44,000 t offered at INR 1,776/t, equivalent to its notified price. The strong clearance rate suggested steady demand from value-conscious consumers despite the broader cautious sentiment prevailing in the market.

Overall, while total allocations eased slightly to 106,400 t from 112,700 t, the latest auction highlighted a shift towards selective procurement, with buyers prioritising either premium-quality coal at reasonable prices or lower-cost grades meeting immediate operational requirements.

Premium grades attract selective interest

The strongest response emerged for Chitra-origin G3 steam coal. Buyers lifted the entire 35,000 t allocated under the revised offer notice at an average bid price of INR 4,973/t, indicating healthy demand for better-quality steam coal. S. S. Enterprises emerged as the largest buyer in the grade, securing 2,100 t, followed by Magadh Industries Pvt Ltd and Sunil Kumar with 2,000 t and 1,500 t, respectively.

G4 coal also witnessed selective participation. Around 14,300 t were allocated across various sources against more than 57,000 t offered, with average bid prices ranging between INR 5,061/t and INR 6,730/t, substantially above the notified price of INR 3,557/t. Bhanora OC recorded the highest realisation at INR 6,730/t, followed by Narsamuda UG at INR 6,110/t. S. S. Enterprises remained the largest G4 buyer with 3,900 t, while A.K. Singh & Company secured 2,900 t.

G9 clears fully at notified levels

G9 steam coal from Gourandih Begunia OC attracted steady participation. Buyers lifted 38,600 t against 44,000 t on offer at an average bid price of INR 1,776/t, equivalent to the notified price.

Compact Weighing Private Limited emerged as the largest buyer, procuring 21,000 t, while Greenosphere Renewable Energy secured 14,000 t. The full clearance at notified levels suggested stable demand from value-conscious consumers.

Lower grades from Rajmahal fail to fetch bids

In contrast, Rajmahal-origin lower grades witnessed subdued participation despite accounting for the bulk of the offer basket.

G13 ROM coal saw only 7,900 t allocated against 499,000 t offered. Vision Sponge Iron Pvt Ltd emerged as the largest buyer, lifting 4,000 t. The grade cleared at INR 1,716/t, matching the notified price.

Similarly, G11 steam coal recorded allocations of just 8,950 t against 184,100 t on offer from Rajmahal and Hura C OC. The average bid price remained unchanged at INR 2,154/t. Shyam Agencies emerged as the largest buyer with 2,200 t.

Hura C-origin G12 coal also received limited interest, with only 650 t booked against 99,600 t offered at the notified price of INR 1,801/t.

Selective procurement reflects adequate availability

The auction highlighted the divergence in buyer preferences. Consumers were willing to pay premiums for better-quality steam coal such as G3 and select G4 sources, while lower-grade Rajmahal material attracted little urgency despite abundant availability.

The low overall allocation ratio suggested that comfortable coal availability and cautious consumption trends continued to weigh on spot market participation, with buyers restricting purchases largely to immediate operational requirements.