India: SECL allocates 0.96 mnt in 29 June coal auction

• G11 dominates volumes; Dipka attracts premiums
  
  
• G6 remains most sought-after grade
  
  

South Eastern Coalfields Ltd (SECL) allocated around 0.96 million tonnes (mnt) of non-coking coal against the offered quantity of 11,22,000 tonnes in its e-auction held on 29 June 2026, with G11 coal accounting for nearly 94% of the total allocated volume. Although the auction basket was smaller than the previous sale held on 22 June, bidding remained healthy for select grades, with higher-quality coal continuing to attract strong premiums.

Compared with the previous auction, total allocations declined from around 2.04 mnt to 0.96 mnt, reflecting the lower quantity offered. However, buyer participation remained selective, particularly for higher-grade coal and preferred mine sources.

G11 coal dominates allocations

G11 coal accounted for the bulk of the auction, with around 900,000 t allocated at average bid price of INR 1,464/t across Gevra OC and Dipka OC against a notified price of INR 1,184/t.

Gevra OC allocated 500,000 t at an average winning price of INR 1,464/t, translating to a premium of around 24%. Meanwhile, Dipka OC allocated 400,000 t at an average winning price of INR 2,080/t, reflecting a premium of around 76%, indicating stronger preference for Dipka-origin coal owing to its quality and logistical advantages.

Buyer participation remained concentrated in this grade. Rawan Cement Works emerged as the largest buyer, securing 100,000 t of G11 coal. Jai Bhole Enterprises, Asak Coal Private Limited and Jai Bhole Traders each secured 48,000 t, followed by Bhatia Energy and Minerals Private Limited with 37,500 t, RJA Constructions LLP with 31,000 t and ACB (India) Limited with 30,000 t. The buying pattern reflected continued demand from cement producers, coal traders and coal beneficiation companies.

Compared with the 22 June auction, G11 allocations declined from around 1.67 mnt to 0.90 mnt due to the smaller auction basket. While premiums moderated at Gevra OC, Dipka OC continued to witness stronger bidding.

G6 coal records highest premium

Higher-grade G6 coal continued to attract the strongest bidding in the auction. Offered from Amera OC and Sharda OC, the grade was auctioned against a notified price of INR 2,761/t.

Amera OC allocated 50,000 t at an average winning price of INR 4,978/t, translating to a premium of around 80%. Sharda OC allocated 10,000 t at an average winning price of INR 3,987/t, reflecting a premium of around 44%.

Demand for G6 coal remained largely driven by sponge iron and steel producers. Mahendra Sponge and Power Limited emerged as the largest buyer, securing 10,000 t, followed by Real Ispat and Energy Private Limited with 7,500 t. Sambhv Steel Tubes Limited, Swastik Energy and Mineral Beneficiation Private Limited, and Mivaan Steels Limited each purchased 5,000 t, while Asak Coal Private Limited and Arpa Fuel Pvt Ltd secured 4,200 t and 4,100 t, respectively.

Although premiums eased compared with the previous auction, where Amera OC recorded premiums of around 100%, G6 remained the most sought-after grade, highlighting sustained demand for better-quality coal among industrial consumers.

G10 witnesses limited participation

G10 coal witnessed limited participation during the latest auction. Only 500 t from Saraipalli OC was allocated at an average winning price of INR 1,632/t against the notified price of INR 1,360/t, translating to a premium of around 20%.

The entire quantity was secured by Surya Enterprises, reflecting the limited volume offered during the auction.

In comparison, the previous auction witnessed allocation of around 106,000 t of G10 coal at an average premium of around 121%, indicating considerably softer bidding in the latest sale as only a small quantity was made available.

Market sentiment remains selective

The latest SECL auction reflected balanced but selective buying interest. Although total allocations were lower than the previous auction due to the smaller basket, buyers continued to bid aggressively for higher-quality coal and preferred mine sources.

The stronger premium achieved by Dipka OC in the G11 segment and sustained interest in G6 coal suggest that industrial consumers remain willing to pay higher prices for quality material. At the same time, comfortable domestic coal availability and cautious demand from downstream industries continued to limit aggressive bidding across the broader auction basket.

Outlook

SECL's upcoming auctions are expected to witness steady participation from cement, power and sponge iron consumers. However, the onset of the monsoon may lead to lower offered quantities. Ample domestic coal availability and regular Coal India auctions continue to keep the market well supplied, encouraging requirement-based procurement. Buying interest has improved from larger consumers and end-users, with some imported coal users shifting towards domestic coal due to the high cost of imported coal in recent months and weak sponge iron and steel market conditions. Premiums are likely to remain stronger for preferred grades and mine sources, while lower-grade coal may continue to see selective participation.