The coal market in India reflected mixed sentiments this week. Indonesian coal prices saw an uptick due to global price trends, but uncertainty over new regulations kept trading subdued. South African portside coal prices continued to ease as buyers shifted to domestic coal, adding pressure on market sentiment. Domestic coal prices remained weak amid ample supply and cautious buying, leading to distressed sales.
Meanwhile, met coke prices showed regional variations, with western markets firming due to lower imports. Pet coke prices surged as supply constraints and rising demand drove refiners to raise rates. Freight rates also softened, pressured by lower fuel costs and reduced trading activity.
Indonesian portside thermal coal prices rise
Indonesian thermal coal prices at Indian ports increased due to global price hikes, currency depreciation, and rising freight rates. However, low-CV coal demand remained sluggish as new Indonesian regulations have tied seaborne sales to the HBA price, prompting Chinese traders to delay spot trading.
At Indian ports, 5000 GAR coal rose by INR 100 to INR 7,800/t at Kandla and INR 7,700/t at Vizag. Meanwhile, 3400 GAR coal at Navlakhi surged by INR 200 to INR 4,700/t. Globally, 5800 GAR coal increased by $0.48/t to $85.23/t FOB, while 4200 GAR rose by $0.46/t to $49.86/t FOB. Freight from East Kalimantan to Paradip dropped to $12.5/t, down $1.2/t w-o-w.
Portside South African thermal coal prices ease
Portside prices of South African thermal coal in India saw a slight decline, with RB2 (5500 NAR) at Gangavaram Port dropping by INR 50/t to INR 8,450/t exw, while RB3 (4800 NAR) remained steady at INR 7,100/t exw. Some deals were reported at eastern ports.
Thermal coal inventories at Indian ports fell by 1% to 12.09 million tonnes (mnt) in week 9 of CY’25, compared to 13.04 mnt the previous week. Market sources indicated a shift in preference toward domestic coal, leading to further price corrections, especially at Vizag Port.
South African RB2 export offers dropped by $1/t w-o-w to $77/t FOB, while RB3 declined to $60/t FOB.
Domestic coal prices decline further
India’s domestic thermal coal prices continued to fall, with 4,500 GCV coal trading at INR 4,600/t, down INR 200/t w-o-w, and 5,000 GCV at INR 5,350/t, down INR 350/t, both exw-Bilaspur. The latest SECL auction recorded lower bids, reflecting weak sentiment. Traders reported distressed sales as buyers remained cautious due to ample supply and uncertain market conditions.
Domestic coke prices show mixed trends
India’s domestic met coke prices remained stable in the east but increased in the west due to declining imported stocks. BF-grade coke prices stood at INR 34,500/t exw-Jajpur, while prices in Gandhidham rose INR 400/t to INR 32,400/t exw. Limited import bookings and lower port inventories supported domestic prices. Chinese coke prices stabilised after the 10th round of cuts, while Indian pig iron prices in Durgapur increased by INR 1,150/t to INR 35,000/t exw, driven by supply shortages and stronger finished steel demand.
Refineries increase pet coke prices for March
Indian refineries raised pet coke prices for March following Reliance Industries Limited’s (RIL) price increase. RIL’s pet coke prices rose by INR 1,128/t m-o-m to INR 14,578/t, with limited market availability as the company prioritises its gasification units. Chennai Petroleum Corporation Limited (CPCL) raised prices by INR 940/t to INR 14,570/t. Bharat Petroleum Corporation Limited (BPCL) increased rates at Bina by INR 1,006/t to INR 14,297/t and at Kochi by INR 1,705/t to INR 12,651/t. MRPL adjusted prices to INR 11,670/t for road and INR 11,370/t for rail/barge. Nayara Energy’s price rose by INR 1,080/t to INR 14,930/t.
India’s imported pet coke prices rise
Imported pet coke prices in India increased by $0.5-2/t w-o-w, reaching $118.5-121/t CFR on the west coast and $124/t CFR on the east coast. The price rise is driven by limited supply from Saudi Arabia and higher demand from China.
Coal freight rates to India decline
India’s coal freight rates fell this week due to weak market activity, reduced trading, and global holidays. Lower bunker fuel prices further pressured rates, alongside an oversupply of vessels in the Panamax market. The Baltic Panamax Index declined by 107 points to 1,063 on 3 March. Freight rates from Australia to Paradip dropped by $0.6/t w-o-w to $13.9/dmt, while South Africa-India freights from RBCT fell to $12.3/t, down by $0.6/t. Indonesia-India freight rates also declined by $1.2/t w-o-w to $12.5/t for East Kalimantan to Paradip shipments. The market remains subdued amid slow cargo movements and excess vessel availability.
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