India: SECL notifies over 1 mnt of non-coking coal for 28 Jul e-auction; G11-grade dominates offering

- G11 dominates with Gevra’s 1 mnt lot

- Ample coal supply may limit premiums

South Eastern Coalfields Ltd. (SECL) has notified 1.242 million tonnes (mnt) of non-coking coal under the Single Window e-auction Scheme 2022 for the auction scheduled on 28 Jul’26. The catalogue comprises eight lots across G9, G11 and G14 grades, with G11-grade accounting for nearly 90% of the total quantity on offer. The offering is led by Gevra OC’s 1 mnt road lot, while additional volumes have been notified from Jagannathpur OC and the Baroud cluster through a combination of road and rail dispatches.

G9-grade: Jagannathpur OC offers 74,000 t; road mode accounts for majority:

SECL has notified 74,000 t under the G9 cluster, with Jagannathpur OC contributing 70,000 t through road mode at a notified price of INR 1,506/t. The remaining 4,000 t will be supplied through rail via CHP Bhatgaon, comprising G8-grade coal sourced from Bhatgaon UG, Shivnani UG and Jagannathpur OC, carrying a notified price of INR 1,931/t.

G11-grade: Gevra OC’s 1 mnt road lot anchors auction catalogue:

G11-grade forms the bulk of the offering with a cumulative 1.114 mnt. Gevra OC has notified the largest single lot of the auction, offering 1 million tonnes through road mode at a notified price of INR 1,184/t. An additional 4,000 t has been offered through rail from RLS Laxman at the same notified price.

Jagannathpur OC has further notified 110,000 t of G11 coal, comprising 30,000 t through road and 80,000 t via Bhatgaon Wharf Wall Siding (rail). Both lots carry a notified price of INR 1,184/t.

G14-grade: Baroud cluster notifies 54,000 t through road and rail:

Under the G14 cluster, Baroud OC has offered 50,000 t through road mode at a notified price of INR 930/t, while Baroud Silo has notified an additional 4,000 t through rail at the same price. The rail supplies will be sourced from a blend of Baroud OC (50-70%), Bijari OC (5-25%) and Jampali OC (15-35%), ensuring supply from multiple feeding collieries.

Outlook:

The auction catalogue is heavily weighted towards lower-grade thermal coal, with G11-grade accounting for nearly 90% of the total 1.242 mnt offering. The 1 mnt road lot from Gevra OC is expected to attract interest from sponge iron units, captive power plants and other bulk consumers seeking large-volume procurement. Meanwhile, the competitively priced G14 coal from the Baroud cluster may witness healthy participation from cost-sensitive buyers.

The availability of both road and rail dispatches across major SECL mines provides procurement flexibility, although bidding sentiment is likely to remain influenced by prevailing demand conditions and adequate domestic coal availability.