India: MCL's non-coking coal auction records allocation rate of 26%; G12 grade receives highest bookings

• G8 commands sharp premium, G13 bids surge
  
  
• Bids for G11, G12, G13 decline by around 1-8%
  
  

Although allocation volumes increased by around 6% from the last auction, the higher quantity on offer resulted in a marginal decline in the absorption rate, with buyers continuing to procure selectively amid comfortable domestic coal availability.

G12 coal records highest allocations

G12 coal was the most sought-after grade in the auction, accounting for 214,700 t of total allocations. Ananta OCP and Bhubaneswari OCP recorded the highest bookings at 104,000 t each, while Jagannath OCP accounted for the remaining 6,700 t.

The grade cleared at an average winning price of INR 1,389/t against a notified price of INR 1,101/t, translating into an average premium of around 26%.

In the previous auction, G12 coal cleared at winning prices ranging between INR 1,367/t and INR 1,850/t, with an average winning price of INR 1,506/t. This means the average winning price declined by INR 117/t, or around 8%, in the latest auction, indicating softer bidding.

Buyer participation remained concentrated among a few industrial consumers. Jay Dadi Traders emerged as the largest buyer, securing 30,000 t, followed by Indian Metals & Ferro Alloys Ltd. with 22,200 t. Tata Steel Limited, Rungta Mines Limited (Dhenkanal Steel Plant) and Utkal Alumina International Limited each booked 20,000 t. The buying pattern reflected continued demand from steel, ferro alloys and aluminium producers, despite the moderation in bid prices.

G14 coal attracts moderate demand

G14 coal accounted for 192,400 t of total allocations, making it the second-largest contributor to auction volumes. Garjanbahal OCP recorded the highest bookings at 84,200 t, followed by LBL Integrated OCP with 69,000 t, Hingula OCP with 37,400 t, and Samleswari OCP with 1,800 t.

The grade cleared at an average winning price of INR 953/t against a notified price of INR 930/t, translating into an average premium of around 2.5%.

In the previous auction, G14 coal cleared at winning prices ranging between INR 977/t and INR 988/t, with an average winning price of around INR 983/t. This means the average winning price fell by INR 30/t, or around 3%, in the latest auction, indicating softer bidding.

Buyer participation remained concentrated among a few industrial consumers. Rungta Mines Limited emerged as the largest buyer, securing 80,000 t, followed by Param Mitter Ventures Private Limited with 60,000 t. Feegrade and Company Private Limited, Alps Mining Services Private Limited, and Sanish Ventures Private Limited each booked 50,000 t.

G11 witnesses healthy buying interest

G11 coal recorded 166,000 t of allocations, with the entire quantity sourced from Siarmal OCP. The grade cleared at an average winning price of INR 1,480/t against a notified price of INR 1,184/t, translating into an average premium of around 25%.

In the previous auction, G11 coal cleared at an average winning price of INR 1,500/t. The average winning price in the latest auction fell by INR 20/t, or around 1.3%, indicating slightly softer bidding while demand remained strong.

Buyer participation remained concentrated among a few industrial consumers. Param Mitter Ventures Private Limited emerged as the largest buyer, securing 60,000 t, followed by Feegrade and Company Private Limited and Rungta Mines Limited, each procuring 50,000 t.

G13 records steady participation

G13 coal recorded 120,650 t of allocations, with Kulda OCP accounting for the majority of bookings at 119,000 t, followed by Lajkura OCP with 1,500 t and Orient UG Mine with 150 t.

The grade cleared at an average winning price of INR 1,233/t against a notified price of INR 1,016/t, resulting in an average premium of around 21%.

In the previous auction, G13 coal cleared entirely at its notified price of INR 1,016/t. The latest auction therefore saw the average winning price rise by INR 217/t, or around 21%, reflecting stronger bidding and improved price realisation.

On the buyer side, Reliable Steel and Power emerged as the largest buyer, securing 30,000 t, followed by Sanish Ventures Private Limited with 25,000 t and Bee Pee Rollers Private Limited with 21,000 t. Shree Balaji Coal Udyog and Rungta Mines Limited each procured 10,000 t.

G8 commands sharp premium

G8 coal recorded allocations of 100,000 t, with the entire quantity booked from Kulda OCP. The grade achieved an average winning price of INR 3,935/t against a notified price of INR 1,931/t, translating into a premium of around 104%.

The steep premium underscored strong competition for higher-grade coal despite the overall cautious procurement environment.

Chhabra Minerals emerged as the largest buyer, securing 38,200 t, followed by Ind Synergy Limited with 25,000 t. B.S. Sponge Pvt. Ltd. and Sao Exim Limited procured 16,000 t and 10,000 t, respectively.

Washery rejects witness limited demand

IB Valley Washery Rejects recorded allocations of 25,000 t, clearing at an average winning price of INR 507/t. The lower price realisation reflected demand from cost-sensitive industrial consumers utilising washery rejects as an alternate fuel source.

ACB (India) Limited emerged as the sole buyer, securing the entire allocated quantity of 25,000 t.

Market sentiment remains cautious

The latest MCL auction reflected a cautious yet stable domestic coal market, with procurement remaining largely requirement-driven despite higher allocation volumes. Healthy premiums for G8, G11 and G12 coal underscored sustained demand from steel, sponge iron and other industrial consumers, while the modest premium for G14 indicated comfortable availability of lower-grade coal and continued price sensitivity among buyers.

The improvement in G13 price realisation compared with the previous auction suggested selective buying interest in mid-grade coal. Going forward, domestic coal availability is expected to remain adequate, likely keeping bidding activity measured. Premiums for higher-grade coal may remain firm, supported by steady industrial demand, whereas lower-grade coal is expected to continue clearing close to notified prices unless demand fundamentals strengthen.