India: ECL's June 24 coal auction records subdued buying; G4 premium eases from previous sale

• G4 remains the most competitive grade despite lower premium
  
  
• Lower-grade coal continues to clear at notified prices
  
  

Eastern Coalfields Ltd. (ECL) witnessed subdued participation in its coal auction held on 24 June 2026, with buyers booking 54,400 tonnes (t) against 829,500 t offered, translating into an allocation ratio of 6.6%. In comparison, the company's 16 June auction offered 854,150 t, of which 51,950 t was allocated, resulting in an allocation ratio of 6.1%.

ECL schedules 25,000 t G4 coal auction for 3 July

Eastern Coalfields Ltd. (ECL) has offered 25,000 tonnes (t) of G4 steam coal for its e-auction scheduled on 3 July 2026 under the revised Coal India Ltd. (CIL) e-auction scheme. The entire quantity will be sourced from Chinakuri UG Mine (MDO-RS) at a notified price of INR 3,557/t.

Of the total offer, 5,000 t will be available through the road mode directly from the mine, while the remaining 20,000 t will be dispatched via rail through the ASCR Siding.

G4 premium softens from previous auction

G4 remained the strongest-performing grade in the 24 June auction, commanding a premium of INR 2,456/t (69%) over its notified price of INR 3,557/t. Among the offering mines, Tilaboni UG offered the largest quantity of 10,000 t, which achieved an average bid price of INR 5,027/t. Kunustoria UG offered 3,500 t and recorded the highest average bid price among the mines at INR 6,417/t, followed by Bankola UG, which offered 2,000 t at an average bid price of INR 6,063/t. The strong premiums realised across all three mines underscore sustained buyer preference for premium-grade coal despite overall subdued auction participation.

However, bidding intensity eased compared with the 16 June auction, when the grade achieved an average price of INR 6,346/t, commanding a premium of INR 2,789/t (78%) over the same notified price. The latest auction therefore recorded a decline of INR 333/t in realised price and 9 percentage points in premium.

Major buyers included Maan Steel & Power Ltd. (4,600 t), Gauri Shankar Enterprises (3,100 t) and Ratan Coal Suppliers Pvt. Ltd. (1,150 t).

G11 continues to trade at notified price

G11 accounted for the highest allocated volume in the latest auction, with 25,750 t booked at INR 2,154/t, identical to its notified price. The grade also cleared at the notified price in the 16 June auction, indicating continued weak competitive bidding and comfortable supply.

Key buyers included Apollo Energies (3,500 t), Brahmaputra Metallics Limited (3,000 t), Saluja Steel and Power Pvt. Ltd. (3,000 t) and Maa Kalyani Enterprises (3,000 t).

G12 and G13 witness modest participation

Unlike the previous auction, where allocations in these grades were negligible, the latest auction witnessed improved buying interest. G12 recorded bookings of 3,650 t at its notified price of INR 1,801/t, with Mahadev Enterprises purchasing 1,500 t and Krishav Global Enterprises securing 1,000 t.

Similarly, G13 saw 7,500 t allocated at the notified price of INR 1,716/t. Vision Sponge Iron Private Limited emerged as the largest buyer with 6,000 t, followed by K.S.K. Agencies with 1,000 t. Despite higher allocations, both grades continued to clear without any premium.

Limited demand for W-grade coal

The latest auction also witnessed limited participation in W04 coal. Kashinath Enterprise booked 500 t at an average bid price of INR 2,497/t, representing a premium of around INR 500/t (25%) over the notified price of INR 1,997/t.

Market implications

The latest auction reinforces the cautious procurement trend prevailing in the domestic coal market. While G4 continued to command the strongest bidding interest, its premium and realised price moderated from the previous auction, suggesting softer competition for premium-grade coal.

G11 remained unchanged at the notified price, while G12 and G13 attracted higher allocations than the previous sale but failed to generate any bidding premium. Overall, buyers continued to follow a need-based procurement strategy amid comfortable coal availability and subdued spot demand.