- SAIL increases auction frequency, boosting market supply
- NMDC resumes auction activity to liquidate inventories
India’s crude coal tar (CCT) market witnessed a sharp surge in supply during July 2025, with auction volumes expanding more than fivefold from the previous month. While the influx of material boosted market availability, price movements varied across producers in response to both supply dynamics and buyer sentiment.
Supply jumps amid aggressive SAIL auction activity
According to the data maintained by BigMint, total CCT auction volumes in July reached 91,052 tonnes (t), a dramatic rise from 17,598 t in June. The sharp increase was largely driven by higher volumes offered by the Steel Authority of India Limited (SAIL) and its subsidiaries.
SAIL alone accounted for 77,712 t of supply, supported by active participation from NMDC Steel Limited and Rashtriya Ispat Nigam Limited (RINL-Vizag Steel Plant).
The following is a breakdown of the contributions of the major suppliers:
- SAIL-IISCO Steel Plant emerged as the largest supplier, auctioning 35,880 t.
- SAIL-Rourkela Steel Plant followed with 23,000 t offered, selling 14,700 t successfully.
- NMDC Steel Limited, Nagarnar, took the third spot, conducting auctions for 12,500 t, with 12,000 t sold.
The surge in volumes was primarily attributed to the increased frequency of auctions across SAIL subsidiaries, aimed at clearing inventories and capturing market demand.
Price movements show mild variations
Despite the steep rise in supply, most SAIL subsidiaries experienced more or less stable price trends, suggesting sustained buying interest in the market.
- SAIL-Rourkela: Prices opened at INR 42,000/t on 2 July, declined to INR 37,150/t by 22 July due to mid-month market softness, and subsequently recovered to INR 39,361/t by month-end.
- SAIL-Bhilai: Prices showed a steady decline, from INR 41,307/t for 1,495 t sold on 10 July to INR 40,270/t for 1,788 t sold on 31 July. However, rates remained above the June average of INR 36,927/t. An auction on 21 July for 1,009 t received no bids, as buyers considered the price too high.
- RINL-Vizag Steel: Prices followed a mild upward trajectory, with July’s auction closing at INR 37,400/t, up INR 400/t from the previous one in June.
- NMDC Steel: The company resumed auctions in July after halting sales in June to stockpile material for potential long-term supply agreements with derivative manufacturers. Six auctions were conducted last month, offering 12,500 t, with 12,000 t sold at prices between INR 36,000-37,000/t. An early-July auction of 1,000 t was cancelled and later merged with other lots.
Why did supply rise sharply in Jul’25?
The sharp rise in auction volumes during July was driven by a combination of strategic and operational factors. Inventory clearance played a key role, as NMDC and SAIL subsidiaries ramped up auction activity to avoid stock deterioration. This was supported by operational resumptions, with plants that had paused sales in June returning to the market to cater to pent-up demand. Additionally, NMDC’s planned shift in sales strategy towards long-term agreements (LTAs) faced delays, prompting the company to revert to auctions as a quick way to liquidate accumulated stocks.
Outlook
The CCT market will remain well-supplied as producers clear inventories. Prices should hold if demand stays firm, but monsoon disruptions or weaker offtake could push rates lower, while a shift to long-term contracts may tighten spot availability.
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