CIL brought down the reserve price for the auctions at the level of the notified price at the onset of the Covid-19 pandemic.
The October auctions has signalled stable auction sales and increased premiums in the ensuing months even after adding premium on the notified price to fix the reserve price, a top CIL executive said.
CIL’s e-auction sales at 16.8 million tonne (mt) in October was up 190% compared to 5.8 mt booked during October last fiscal.
The big jump was on the back of the power sector and other coal buyers, signalling a strong demand resumption after a Covid-led hiatus.
The October auctions fetched CIL an average13% increase over the notified price though special spot, which is a new auction outlet for coal importers,over the prevailing four windows chipped in 14% increase over the notified value, a CIL spokesperson said, adding under the special spot, a first time introduction meant for containing coal imports, 1.6 mt of coal was booked.
CIL’s special forward auction for the power sector, booked 6.5 mt in October, accounting for 38.7% of the total booked quantity. This sector booked only 2 mt in September.
The power sector’s booking for the seven months ending October this fiscal, has been 16.5 mt compared to 12.9 mt booked during the same period last fiscal, a 28% increase.
Volume booking in e-auctions for the first seven months of the ongoing fiscal ending October at 59 mt, increased 28 mt, a growth by 90%, while it fetched an average premium of 10% over the notified price.
During April-October, non power sector consumers in exclusive e -auction, booked 16.8 mt against 4.8 mt it had booked during the same period last fiscal.
The importers’ and non power sector consumers’ volume bookings showed a healthy appetite since the unstructured coal market has no direct access for such category of consumers to purchase of coal, the CIL spokesperson said.