- Post-GST, portside RB2, RB3 offers rise sharply
- Sponge iron prices weaken w-o-w
South African portside coal prices in India moved higher post-GST, though buying interest stayed muted. At Vizag, RB2 climbed INR 450/t w-o-w to INR 8,200/t and RB3 rose INR 300/t to INR 7,100/t. At Gangavaram, RB2 increased by INR 300/t to INR 8,200/t, while RB3 gained INR 300/t to INR 7,100/t. Despite higher offers, no active deals were reported, with limited trades for RB2 were heard between INR 8,150-8,200/t.
Seaborne trade and freights
In seaborne trade, one RB3 Panamax cargo was booked at $57/t FOB Richards Bay for mid-October loading, while an RB2 Panamax shipment concluded at $86/t CNF India for November arrival. Export offers dropped by $2/t w-o-w, with RB2 at $69/t FOB and RB3 at $58/t FOB.
Freight dynamics also added pressure as South Africa-India Panamax rates rose sharply by $2.8/t w-o-w to $18/t, supported by tight vessel availability and firm owner sentiment, despite limited fixtures.
Domestic coal and sponge iron market
Domestic coal tags stayed stable, with 5,000 GCV at INR 5,750/t ex-Bilaspur and 4,500 GCV at INR 4,900/t. SECL’s 24 September auction saw sponge grade coal fetching strong premiums, indicating selective demand. In the sponge iron market, BigMint’s C-DRI index (ex-Rourkela) fell INR 350/t to INR 26,100/t. Prices weakened by INR 100-200/t across most regions, except Ramgarh, which saw a rise of INR 200/t due to supply constraints.
Outlook
Prices may stay range-bound until demand recovers post-monsoon, with cautious sentiment expected in the near term.
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