India: South African portside thermal coal prices hit-4 year low on subdued buying

• Inventories decline to 15 mnt
• Sponge prices inch down further

South African coal prices at Indian ports continued to decline this week amid weak demand and lack of buying interest. As per BigMint’s latest assessment, RB2 (5500 NAR) fell by INR 350/t w-o-w to INR 7,900/t exw-Gangavaram, while RB3 (4800 NAR) dropped by INR 250/t to INR 6,900/t. No major deals were reported as most buyers stayed on the sidelines, anticipating further price corrections. RB2 prices in Paradip are hovering at four-year low levels as per data maintained with BigMint.

Thermal coal inventories fall

Thermal coal inventories at Indian ports declined by 2.2% w-o-w to 14.62 million tonnes (mnt) in week 20 of CY’25, down from 14.95 mnt in the previous week.

Export prices drop slightly

South African RB2 export offers fell by $1/t w-o-w to $72.5/t FOB, while RB3 dropped to $60/t FOB.

Domestic coal prices steady, auctions dull

Domestic coal prices remained unchanged this week. The 4500 GCV grade was assessed at INR 4,350/t and the 5000 GCV at INR 4,800/t exw-Bilaspur. The market remained quiet due to reduced buying appetite and ongoing direct supply to power plants. In SECL’s auction on 22 May, only 0.19 mnt of coal was allocated, reflecting weak participation.

Sponge iron prices soften slightly

C-DRI prices were assessed at INR 25,100/t exw-Rourkela, INR 200/t lower w-o-w. Trading volumes were limited as the sponge iron sector showed no signs of active restocking.

Outlook

With no immediate uptick in demand and buyers staying cautious, the thermal coal market is expected to remain dull. Traders are likely to stay on the sidelines unless fresh offers drop significantly or steel-related demand improves.