India: MCL coal e-auction allocation improves; premium grades command active bids

• • G11, G13 allocations surge; absorption improves

• • G8 grade coal premiums stay strong above 110%

Mahanadi Coalfields Ltd. (MCL) allocated 799,750 t of non-coking coal in its latest e-auction against a notified quantity of 3.47 million tonnes (mnt), resulting in an absorption rate of 23.1%. This marks an improvement over the previous auction held on 11 Jul’26, when 768,300 t was allocated out of 3.48 mnt offered, translating into an absorption rate of 22.1%.

The latest auction recorded an increase of 31,450 t in allocated volume, indicating a modest improvement in buyer participation despite continued comfortable domestic coal availability and subdued industrial demand during the monsoon season. Procurement remained largely requirement-based, with stronger competition for higher-grade coal and selective buying in lower grades.

Company-wise, Rungta Sons Pvt. Ltd. emerged as the largest buyer in the auction, procuring 150,000 t across G8, G11 and G14 grades. This was significantly higher than its procurement of 91,250 t in the previous auction, when it had purchased coal across G8, G11, G12 and G13 grades.

G8 continues to command highest premium:

G8 coal remained the best-performing grade despite lower allocations. A total of 55,000 t was sold from Kulda mine and Nandira mine, compared with 100,000 t allocated in the previous auction.

Kulda realised an average bid price of Rs 4,110/t against the notified price of Rs 1,931/t, improving from Rs 3,959/t in the previous auction. The premium remained above 110%, highlighting sustained demand for superior-quality coal. Nandira UG Mine cleared its entire quantity at the notified price.

Rungta Sons Pvt. Ltd. emerged as the largest buyer with 50,000 t, replacing Bee Pee Rollers Pvt. Ltd., which had led procurement in the previous auction.

G11 allocation more than doubles as participation strengthens:

G11 recorded one of the strongest improvements in the latest auction. Allocations increased to 134,000 t from 53,000 t in the previous sale, with the entire volume sourced from Siarmal mine.

The average winning price remained unchanged at Rs 1,480/t against the notified price of Rs 1,184/t, indicating stable pricing despite significantly higher allocations.

Demand was led by Rungta Sons Pvt. Ltd. and Feegrade and Company Pvt. Ltd., which secured 50,000 t each, followed by Agarwal Coal Corporation Pvt. Ltd. with 32,000 t.

G12 demand remains firm despite lower allocations:

G12 recorded allocations of 204,000 t, down from 352,000 t in the previous auction. The grade was offered from Bhubaneswari, Ananta, Spur 5 Rail Siding (ACTR) and Bhubaneswari Silo (SJWT) through both road and rail modes.

Despite allocations declining from the previous auction, G12 continued to command healthy premiums over its notified price of Rs 1,101/t. Realised bid prices ranged between Rs 1,274/t and Rs 1,592/t, broadly in line with the previous auction’s average winning price of Rs 1,471/t, reflecting sustained demand for mid-grade coal.

Jindal Steel emerged as the largest buyer, securing 40,000 t, followed by Tata Steel Ltd. with 25,000 t, ALPS Mining Services Pvt. Ltd. with 20,000 t, Anand Carbo Pvt. Ltd. with 16,100 t, OPG Power Generation Pvt. Ltd. with 11,850 t, and JK Paper Ltd. with 10,000 t. The diverse buyer profile from the steel, power and industrial sectors underscores the continued preference for G12 coal despite a decline in allocated volumes.

G13 allocations surge on strong buying interest:

G13 recorded allocations of 191,900 t, a sharp increase from 60,650 t in the previous auction. The grade was offered from Kulda mine, Laikera Rail Siding (MCFL), Spur 10 Rail Siding (BBMT) and Orient 2 mine through both road and rail modes.

The grade continued to realise modest premiums over its notified price of Rs 1,016/t. Average bid prices ranged between Rs 1,230/t and Rs 1,277/t, largely unchanged from the previous auction’s average realised price of Rs 1,231/t. The stable price trend, despite a more than threefold increase in allocated volume, reflects balanced demand and requirement-based procurement by consumers.

Feegrade and Company Pvt. Ltd. emerged as the largest buyer, securing 60,000 t, followed by Rungta Sons Pvt. Ltd. with 50,000 t, Hindustan Zinc Ltd. with 28,000 t, Sarda Metals & Alloys Ltd. with 16,900 t, and KAI International Pvt. Ltd. with 11,000 t. The strong participation from steel, metals and industrial consumers supported the sharp increase in G13 allocations while keeping realised prices firm.

G14 remains largest allocated low-grade segment:

G14 remained the largest low-grade segment in the latest auction, with 210,700 t allocated, up from 198,650 t in the previous auction. The grade was offered from Garjanbahal mine, Hingula, Integrated LBL, Samleswari and BOCM-3 Rail Siding (BOCB) through both road and rail modes.

Despite allocations increasing to 210,700 t from 198,650 t in the previous auction, G14 continued to witness only modest premiums. The average realised bid price improved to around Rs 977/t, up from Rs 960/t in the previous auction against a notified price of Rs 930/t. The higher realisation indicates slightly firmer bidding, although ample availability of lower-grade coal kept premiums largely under check.

Rungta emerged as the largest buyer, securing 50,000 t, followed by Bhatia Energy and Minerals (Sundargarh) Pvt. Ltd. with 30,000 t. ALPS Mining Services Pvt. Ltd. purchased 20,000 t, while Vimla Infrastructure (India) Pvt. Ltd. and Tata Steel Ltd. secured 15,000 t each. RJA Constructions LLP lifted 11,000 t, and Shree Anjani Enterprises procured 10,000 t. The buyer mix reflects continued requirement-based procurement, with demand concentrated among established industrial consumers rather than aggressive speculative buying.

Market sentiment:

Market sentiment remained cautiously positive in the latest MCL e-auction. The slight improvement in the absorption rate indicates that buyers are gradually returning to the market, although procurement continues to be driven by immediate consumption requirements rather than inventory build-up. Strong competition for G8 coal and firm premiums for G12 reflect sustained demand for better-quality coal from steel, sponge iron and industrial consumers. In contrast, G13 and G14 grades witnessed selective buying, with prices remaining close to notified levels due to adequate availability of lower-grade coal.

Outlook:

Looking ahead, domestic coal availability is expected to remain comfortable as Coal India continues to maintain healthy production and dispatch levels. Demand is likely to stay requirement-based during the remaining monsoon period, limiting aggressive bidding for lower-grade coal. However, premium grades are expected to continue attracting healthy competition owing to consistent demand from end-user industries. Overall, auction participation is likely to remain stable in the near term, with stronger premiums expected for superior grades while lower-grade coal continues to trade at modest premiums unless industrial activity strengthens after the monsoon.