- Sponge iron prices inch down w-o-w
- Lower bids weigh on imported coal offers
Portside South African thermal coal prices in India saw a slight decline this week, with RB2 (5500 NAR) dropping to INR 8,500/tonne (t) exw-Gangavaram, down INR 150/t w-o-w. Meanwhile, RB3 (4800 NAR) fell to INR 7,150/t, marking a INR 50/t decrease.
With domestic coal availability improving, buyers increasingly prefer local supplies, leading to weaker portside offers and bids falling by INR 100-200/t. Additionally, sponge players have slowed down purchases and are cutting down buying plans for the next couple of months, further impacting market activity, highlighted sources.
Thermal coal inventories at Indian ports declined significantly in week 7 of CY’25, registering an 8.6% drop to 12.58 million tonnes (mnt) from 13.76 mnt recorded in the previous week, hitting a nearly 3-month low, as per BigMint data.
Market overview
South Africa’s export offers edge down: South Africa’s RB2 (5500 NAR) coal export offers fell by $2/t w-o-w to $80/t FOB, down from $82/t last week, while RB3 (4800 NAR) declined by $3/t to $59/t FOB, compared to $62/t previously.
Indian domestic thermal coal prices inch down: Domestic thermal coal prices in India inched down by INR 50-100/t, with 4500 GCV priced at INR 4,900/tonne (t) and 5000 GCV at INR 5,900/t, both exw-Bilaspur. Market participants noted that bids in the recent SECL auction were lower, despite active participation.
Sponge iron prices remain under pressure: Sponge C-DRI prices were assessed at INR 25,800/tonne (t) exw-Rourkela, down by INR 100/t from INR 25,900/t last week.
Outlook
Portside South African coal prices may remain under pressure as domestic coal continues to dominate buyer preference. Reduced buying interest and extended procurement cuts are likely to weigh on prices, with limited chances of recovery in the near term.
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