India: Over 700,000 tonnes of coal booked in SECL's auction, bids drop
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- G11 coal dominates auction allocations
- Cement buyers drive bidding activity led by Ultratech
G11 coal prices softened in the latest auction, with the average winning price falling by INR 171/t (10.6%) to INR 1,441/t from INR 1,612/t in the previous auction held on 22 May 2026.
G11 allocations also dropped significantly to 690,100 t from 1.67 mnt allocated in previous auction, reflecting a more cautious buying approach amid subdued steel and sponge iron market conditions.
Kusmunda OC drives G11 allocations
Kusmunda OC emerged as the key contributor to auction volumes, accounting for 600,000 t of allocated coal. Chhal OC followed with allocations of 90,100 t, while Baroud OC contributed 16,000 t.
The strong allocation from Kusmunda OC helped support overall auction volumes, with buyers showing preference for large-volume, lower-grade fuel coal suitable for industrial and power generation requirements.
G11 coal attracts steady industrial demand
G11 coal accounted for the overwhelming majority of allocations, with 690,100 t successfully booked at an average winning price of INR 1,441/t against the notified price of INR 1,184/t. This translated into an average premium of around 22%, indicating steady demand from cement, power and industrial consumers despite subdued market conditions.
Among the major buyers, Ultratech Cement emerged as the largest participant, securing 85,000 t of G11 coal. Bhatia Energy and Minerals Private Limited followed with 40,000 t, while M/s Puja Enterprises and ACB (India) Ltd. each booked 25,000 t. Nuvoco Vistas Corporation Limited secured 20,000 t.
The participation pattern highlighted continued procurement interest from cement manufacturers, coal processors and power producers seeking cost-effective fuel supplies.
G14 coal records selective participation
G14 coal witnessed comparatively limited allocation volumes, with 16,000 t sold at an average winning price of INR 1,116/t against a notified price of INR 930/t. The grade recorded an average premium of 20%.
Within the segment, Shri Shyam Ispat India Pvt. Ltd., Singhal Steel and Power Pvt. Ltd., and Shri Bajrang Traders each secured 4,000 t. Mivaan Steels Limited and Pavani Construction & Developers booked 2,000 t each.
The participation reflected requirement-based buying from steel and trading companies, with buyers remaining cautious amid weak finished steel demand and pressure on sponge iron margins.
Buyer participation concentrated among cement and industrial consumers
Buyer activity remained concentrated among cement manufacturers, power producers, coal beneficiation companies and select steel players. Cement companies accounted for a significant share of procurement volumes, reflecting stable fuel requirements despite broader industrial demand concerns.
Meanwhile, participation from sponge iron manufacturers remained relatively limited as weak steel demand continued to impact production economics and raw material procurement decisions.
Market sentiment remains cautious
The latest SECL auction reflected balanced yet cautious market sentiment. While lower-grade G11 coal witnessed healthy uptake supported by cement and industrial demand, overall allocations fell short of the offered quantity, indicating the absence of aggressive buying.
Market participants noted that weak demand in the steel sector continues to weigh on sponge iron production, which in turn has affected non-coking coal consumption. Adequate coal availability through regular Coal India auctions and comfortable inventory levels at several consumers have further encouraged requirement-based procurement.
Despite the subdued downstream sentiment, the premiums achieved for both G11 and G14 grades suggest that buyers continue to participate selectively for operationally suitable material, particularly from established mining sources.
