India: ECL’s 30 Jun coal auction sees higher allocations as G4 premiums strengthen sharply

• • G4 dominates with highest auction premiums

• • Buyer participation rebounds in latest auction

Eastern Coalfields Ltd. (ECL) witnessed an improvement in coal offtake in its e-auction held on 30 Jun’26, with 105,500 t allocated against an offered quantity of 1.01 mnt, translating into an allocation ratio of around 10%. This marked a notable increase from the 24 June auction, when 54,400 t was booked out of 829,500 t offered, resulting in an allocation ratio of 6.6%.

Despite the higher offered volume in the latest auction, buyers nearly doubled their procurement, indicating improved participation, largely supported by stronger demand for premium-grade coal.

G4 premiums surge above previous auction:

G4 remained the best-performing grade in the 30 Jun auction, with 76,500 t allocated compared with around 15,500 t in the previous auction. The grade carried a notified price of INR 3,557/t, while realised prices ranged between INR 4,468-7,241/t, translating into premiums of 26-104%.

The latest auction recorded a significant improvement over the 24 Jun sale, when G4 achieved an average premium of INR 2,456/t (69%) over the notified price.

Sonepur Bazari offered the highest quantity of 40,000 t, fetching an average bid price of INR 7,241/t, the highest among all participating mines. Shyamsundarpur offered 15,000 t and realised INR 4,468/t. Kumardihi B UG and Khottadih OC offered 5,000 t each, recording average bid prices of INR 6,147/t and INR 6,103/t, respectively. Bahula UG sold 3,500 t at INR 6,123/t, while Jhanjra UG and JK Nagar UG offered 2,000 t each, achieving average bid prices of INR 6,470/t and INR 7,114/t, respectively.

Chora Block Inc and Lower Kenda UG each offered 1,500 t, fetching INR 6,057/t and INR 6,064/t, respectively, while Mandarboni-SS offered 1,000 t at an average bid price of INR 5,932/t.

Shakambhari Ispat & Power Ltd., Super Smelters Ltd., and Shyam Steel Manufacturing Ltd. each booked 10,000 t, while Giridhan Metal Pvt. Ltd. procured 5,500 t and Vision Sponge Iron Pvt. Ltd. purchased 4,850 t.

G11 allocation declines but continues at notified price:

G11 allocations fell to 9,900 t in the 30 Jun auction from 25,750 t on 24 Jun.

However, the grade continued to clear at its notified price of INR 2,154/t, reflecting muted competition.

Hura C OC sold 5,200 t, while Rajmahal OC allocated 4,700 t, both at INR 2,154/t.

Among buyers, Apollo Energies remained the largest purchaser with 5,000 t, followed by K.S.K. Agencies with 2,000 t. Raj Enterprises, RCB Minerals Pvt. Ltd., Shree Bahubali Mercantile Pvt. Ltd., and Saha Enterprise accounted for the remaining purchases.

G13 volumes increase despite no premium:

G13 allocations increased to 10,200 t from 7,500 t in the previous auction. The entire quantity was sourced from Rajmahal OC, with the grade clearing at its notified price of INR 1,716/t.

Vision Sponge Iron Pvt. Ltd. remained the largest buyer with 6,000 t, followed by K.S.K. Agencies with 2,000 t and Saroj Commodities Pvt. Ltd. with 1,500 t. Although volumes improved, the grade continued to witness no premium over the notified price.

G5 attracts robust premiums:

Unlike the 24 Jun auction, where G5 was absent, the 30 Jun auction saw 5,500 t allocated. Against a notified price of INR 3,275/t, the grade fetched average bid prices of INR 6,154-6,203/t, representing premiums of around 88-89%.

Amkola OC sold 4,000 t at INR 6,203/t, while Siduli UG allocated 1,500 t at INR 6,154/t.

The major buyers were VYS Metal, which procured 1,200 t, followed by Ranisati Coal Carriers Pvt. Ltd. with 1,150 t, Shree Krishna Enterprise with 1,000 t, Har Har Mahadev Enterprise with 400 t, and Mark Steels Ltd. with 300 t.

W04 premium improves over previous auction:

W04 allocations rose to 2,700 t from just 500 t in the previous auction. The grade carried a notified price of INR 2,890/t and realised average bid prices of INR 3,613-3,628/t, implying premiums of around 25-26%.

Among the participating mines, Shyampur B UG sold 1,600 t at an average bid price of INR 3,613/t, while Badjna UG allocated 600 t at the same average bid price of INR 3,613/t. Kumardhubi UG sold 500 t at a slightly higher average bid price of INR 3,628/t.

VYS Metal emerged as the largest buyer, procuring 1,150 t, followed by S.M. Commodities with 350 t and JPB Traders Pvt. Ltd. with 250 t.

G12 continues to clear at base price:

G12 allocations declined to 750 t in the 30 Jun auction from 3,650 t in the previous sale. The entire quantity was sourced from Hura C OC, which recorded an average bid price of INR 1,801/t, equal to the notified price of INR 1,801/t.

On the buyer side, Jaiswal Brothers procured 400 t, while Avyix Private Limited purchased the remaining 350 t.

Market outlook:

The 30 Jun auction reflected a clear improvement in buyer participation, with the allocation ratio rising to 10.4% from 6.6% in the previous auction. The increase was primarily driven by stronger demand for G4 coal, which not only witnessed a sharp rise in allocated volumes but also recorded substantially higher bid prices at several mines.

While G5 also attracted healthy premiums in its return to the auction catalogue, G11, G12 and G13 continued to clear at their respective notified prices, suggesting that buying interest remained concentrated in premium-grade coal.

Overall, the latest auction indicates that consumers are willing to pay higher premiums for select high-quality material while maintaining a cautious procurement approach for lower grades.