Flat Auction Prices Defy Growing Coal Demand

In the January-March 2025 quarter, auction prices for coal sold by Coal India remained flat despite increased buyer participation. With over 80 million tonnes of stock, domestic coal availability is stable. mjunction is revamping its auction activities and seeking international expansion, anticipating an increase in sales from overseas operations.

In a surprising trend, auction prices for coal under Coal India have remained stagnant during the January-March 2025 quarter, despite a surge in buyer participation. Industry insiders point to stable domestic supplies and robust stock levels as key factors keeping prices in check.

While buyer interest has grown, with 1,200 new companies registering for auctions, it's not enough to trigger a price surge. mjunction, co-owned by Tata Steel and SAIL, has seen an uptick in auction activity, especially after losing ground to Coal India's in-house auction platform last year.

Looking ahead, mjunction is betting on international markets to boost its revenue. The firm is also exploring financial opportunities in GIFT City to navigate tax challenges, projecting international operations to make up a more significant portion of their sales in the next few years.

(With inputs from agencies.)