- Portside inventories in India inch down w-o-w
- Domestic coal prices fall further in recent auction
Portside prices of South African thermal coal in India saw a slight decline w-o-w at Gangavaram Port, with RB2 (5500 NAR) dropping by INR 50/t to INR 8,450/t exw, while RB3 (4800 NAR) remained stable at INR 7,100/t exw. Some deals were heard concluded at eastern ports.
Thermal coal inventories at Indian ports experienced a slight decline of 1%, dropping to 12.09 million tonnes (mnt) in week 9 of CY’25, compared to 13.04 mnt in the previous week, according to data from BigMint.
“Thermal coal portside prices in India have remained under pressure for yet another week due to shift in preference for domestic coal. Vizag Port has seen an even steeper correction than other ports,” a source from a prominent trading house told BigMint.
Market overview
South African coal export offers decline: South Africa’s RB2 (5500 NAR) coal export offers fell by $1/t w-o-w to $77/t FOB, while RB3 (4800 NAR) dropped to $60/t FOB.
Indian domestic thermal coal prices fall further: Domestic thermal coal prices in India continued to decline, with 4500 GCV trading at INR 4,600/t (down INR 200/t) and 5000 GCV at INR 5,350/t (down INR 350/t), both exw-Bilaspur. The latest SECL auction saw lower bids. Traders reported distressed sales, pushing prices down further as buyers remained cautious amid ample supply and uncertain market conditions.
Sponge iron ore prices increase w-o-w: Indian C-DRI prices increased by INR 150/t w-o-w to INR 26,600/t exw-Rourkela from INR 26,450/t last week. P-DRI prices ranged between INR 24,100-27,000/t. Limited transactions were observed as buyers remained hesitant, though trade volumes showed slight improvement.
Outlook
Portside South African coal prices may continue to face pressure amid ample domestic supply and weaker demand. However, sustained price gains in sponge iron and billets could spur buying interest in the near term.
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