Coal India's e-auction sales up 52% YoY in April-May, as demand rises

Firm posts 16% add-on over notified price during April-May 2021 versus 7% in same period last year

National miner Coal India Ltd (CIL) has witnessed a 52.5 per cent increase in its e-auction coal sales, in the first two months of the current fiscal year, over corresponding period a year before.

In a public statement, CIL said it allocated 21.5 million tonnes under the five auction windows.

The company said as demand for coal has increased, CIL registered a 16 per cent add-on over the notified price during April-May 2021, compared to 7 per cent during the same period last year.

CIL said the reserve price under all e-auction windows was kept at par with notified price during the first six months of the last fiscal.

Out of the total allocated coal volume, non-power sector accounted for 50 per cent of the booked quantity. This includes steel, iron and cement sectors.

With economic activities rebounding, coal demand from key manufacturing sectors has also increased.

E-auction booking by power sector consumers rose 49 per cent over last year with bookings of 6.1 million tonnes under ‘Special forward auction’ meant exclusively for them.

The increased demand for coal is linked to the summer demand from the power sector which is preparing for the peak electricity demand season. Last year, peak demand during summer months touched a record 180 Gw.

During May 2021, peak power demand was up 2 per cent year on year. Spot power market saw its volume growing by 9 per cent.

“Though there is revival in supplies to power sector, our concern is that there is still a bit of vacillation in the demand. We hope it stabilizes soon” said the statement by CIL.

Auction allocation under ‘Spot auction’ window where all coal consumers including coal traders could participate, also clocked 35 per cent growth ending May 21 at 4.6 million tonnes.

“Hopefully, if the demand regains stability we aim to surpass the last year’s mark with increased add on over the notified price without letdown on supply commitment to power sector and non-power sector”, CIL said in its statement.