India: SECL auction bookings improve with 1.3 mnt coal allottments

• BALCO emerges largest buyer
  
  
• G11 coal dominates allocations at 0.68 mnt
  
  

South Eastern Coalfields Ltd's (SECL) non-coking coal auctions held on 16 and 17 June 2026 witnessed allocations of 1.33 mnt against an offered quantity of 1.79 mnt, resulting in an overall absorption rate of 74%. Buying interest improved significantly compared with the 1 June auction, where allocations stood at 706,100 t. Participation was primarily driven by aluminium, cement, power and industrial consumers, while premium grades attracted strong bidding despite mixed downstream market conditions.

G11 coal accounts for largest share

G11 remained the most traded grade in the latest auctions, with around 680,100 t allocated from Dipka Silo, Chhal OC, Kusmunda Silo and RLS Laxman. The grade cleared at average prices of INR 1,421-1,434/t against a notified price of INR 1,184/t, translating into a premium of around 20-21%.

Compared with the 1 June auction, G11 allocations remained broadly stable at around 690,100 t. However, the average winning price eased marginally by INR 10/t to around INR 1,431/t from INR 1,441/t previously, indicating comfortable availability despite steady demand.

Among all grades offered, G10 coal from Amadand OC achieved the highest premium. Buyers booked the entire 125,000 t offered at an average winning price of INR 3,349/t against a notified price of INR 1,360/t, reflecting a premium of nearly 146%.

The strong realisation highlighted buyer preference for better-quality fuel coal despite cautious conditions in the broader steel and sponge iron markets.

Higher grades attract aggressive bidding

Several higher-grade categories recorded substantial premiums over notified prices. G3 coal from Churcha and Katkona UG cleared at INR 4,199-4,810/t against a notified price of INR 3,449/t, reflecting premiums of 22-39%.

G6 coal achieved prices between INR 3,710/t and INR 4,191/t against a notified price of INR 2,761/t, translating into premiums of 34-52%. Similarly, G7 coal cleared at INR 3,617-3,853/t compared with its notified price of INR 2,540/t, while G8 coal achieved premiums ranging from 20% to almost 99% depending on the source.

The stronger bidding for these grades contrasted with the relatively stable premiums observed for G11 and lower-grade coal.

Lower grades witness selective demand

Lower-grade coal continued to attract requirement-based buying. G13 coal from Manikpur sources cleared at INR 1,220-1,297/t against a notified price of INR 1,016/t, resulting in premiums of 20-28%.

Meanwhile, G14 coal from Jampali OC and Baroud sources cleared at INR 1,116/t against a notified price of INR 930/t, reflecting a premium of around 20%. The realised prices were unchanged from those recorded in the 1 June auction, indicating stable demand from value-conscious consumers.

BALCO leads buyer participation

Buyer participation remained concentrated among large industrial consumers. Bharat Aluminium Company Ltd (BALCO) emerged as the largest buyer, securing 440,000 t, including 436,000 t of G11 coal. Other notable participants included Indermani Mineral India Pvt Ltd, Shelter Infra Developers, Sarda Energy & Minerals Ltd, ACC Ltd and Agarwal Fuel Corporation.

The 16 June auction accounted for the majority of bookings, with an absorption rate of around 85%, while the 17 June auction witnessed comparatively weaker participation, with only 61,000 t allocated against 306,000 t offered.

Market sentiment improves

The latest SECL auctions reflected a notable improvement in procurement sentiment compared with the beginning of June. Higher allocation volumes and healthy premiums across G3, G6, G8 and G10 grades indicated stronger buying interest despite weak steel demand and the onset of the monsoon season.

Market participants attributed the improved participation to attractive auction availability, stable domestic coal prices and continued fuel requirements from cement, power and industrial consumers. While downstream steel sentiment remained mixed, buyers appeared more willing to secure coal through auctions amid expectations of stable domestic coal fundamentals in the coming weeks.