Team News Riveting
Kolkata, November 4
Coal India’s booked quantity of coal under e-auctions nearly tripled to 16.8 Million Tonnes (MTs) in October’20 compared to 5.8 MTs of October last year, on the back of a big push from power sector and other coal buyers.
The steep growth of 190 per cent or an increase of 11 MTs, during the month, bodes well for CIL as it signals a strong demand resumption for coal after a Covid led hiatus.
Volume booking in e-auctions for the first seven months of the ongoing fiscal ending October at 59 MTs, increased by 28 MTs translating into a growth of 90 per cent. For a comparable period last year CIL booked 31 MTs.
October’20 auction sale, in addition to the four prevailing windows, included a new auction outlet called special spot for coal importers, under which 1.6 MTs of coal was booked. CIL in a first, has introduced this category meant exclusively for coal importers to contain imports from abroad. “This opened an additional avenue for our coal companies to step up their sales” said a senior executive of the company.
Coal that went under auction hammer during October’20 fetched CIL 13% increase over the notified price. Special spot for coal importers chipped in 14 per cent increase over the notified value.
With the onset of the covid pandemic CIL has brought down the reserve price close to zero during the first half of the present fiscal. It was only in October, as a bellwether, CIL introduced an add-on ranging from zero to a maximum of 10 per cent over the notified price to test the market trend.
“From November onward we have reverted back to the pre-covid status where subsidiaries of CIL will determine their own add-ons. Gauging the response we are confident of stable auction sales and increased premiums in the ensuing months” said the referred executive.
In a clear indication of growing demand from power sector, CIL’s special forward auction, meant specifically for this sector, booked 6.5 MTs in October accounting for 38.7 per cent of the total booked quantity of the auction. Compared to 2 MTs booked in September’20 the growth has zoomed up to 225 per cent in October.
Unstructured coal market composed of consumers and traders having no direct access for purchase of coal have shown healthy appetite in volume bookings as is evident from the spot auction and special spot auction applicable to all buyers of coal. These two auctions with a booking of 5.4 MTs constituted 32 per cent of October auction sales. Compared to 2.4 MTs booked under these auction in September’20 the growth is 125 per cent.
E-auction booking during first seven months of the current fiscal ending October fetched a premium of 10 per cent over the notified price.
During April-October’20 non-power sector consumers in exclusive e-auctionbooked 12 MTsmore coal at 16.8 MTs than it didin the same period last year when the booked quantity was 4.8 MTs.
Propelled by the recent demand Power Sector’s progressive booking ending October’20 was 16.5 MTs, under special forward e-auction – an increase of 3.6 MTs or 28 per cent growth compared to 12.9 MTs ending October’19.
