- Thermal coal inventories rise slightly w-o-w
- SECL bids pressure down domestic 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. Prices are trading at one-year low levels, as per data maintained with BigMint. Meanwhile, RB3 (4800 NAR) fell to INR 7,100/t, marking a INR 50/t decrease.
With domestic coal availability improving, buyers increasingly preferred local supplies, leading to weaker portside offers and falling bids.
Thermal coal inventories at Indian ports increased slightly by 3.6% to 13.04 million tonnes (mnt) in week 8 of CY’25 from 12.58 mnt in the previous week, shows data maintained with BigMint.
Market overview
South Africa export offers exhibit mixed trends: South Africa’s RB2 (5500 NAR) coal export offers inched down $3/t w-o-w to $78/t FOB from $80/t last week, while RB3 (4800 NAR) remained unchanged at $61/t FOB on limited offers.
Indian domestic thermal coal prices dip: Domestic thermal coal prices in India inched down by INR 200/t, with 4500 GCV priced at INR 4,700/tonne (t) and 5000 GCV at INR 5,700/t, both exw-Bilaspur. Market participants noted that bids in the recent SECL auction were lower which may keep prices under pressure in the near term.
Sponge iron prices rise w-o-w: Sponge C-DRI prices were assessed at INR 26,600/tonne (t) exw-Rourkela, up by INR 800/t from last week. Active sponge bookings at a higher price range helped to sustain the increase in inquiries. IF-route rebar manufacturers in Raigarh, Chhattisgarh, and Durgapur, West Bengal, have revised their products’ gauge parity, effective from 27 February. The gauge difference for 12 mm was increased by INR 500/t to INR 5,500/t. However, parity for other sizes remains unchanged.
Outlook
Portside South African coal prices may remain under pressure as domestic coal continues to dominate buyer preference. However, a pick-up in sponge iron and billet prices this week may lift buying inquiries.
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