India: Portside South African thermal coal prices inch up w-o-w on falling port inventories, sponge iron support

• Trade stays limited due to ample domestic coal supply
• Sponge iron prices climb up by INR 2,000/t w-o-w

Indian portside South African thermal coal prices inched up by INR 100-300/t w-o-w during the week ended 2 January 2026 due to price support from sponge iron. As per BigMint’s assessment, RB2 (5,500 NAR) ex-Paradip, Vizag, and Gangavaram increased to INR 9,000-9,200/t w-o-w. RB3 (4,800 NAR) stood stable at INR 7,500-7,550/t at most ports.

“RB2 offers increased to INR 9,100-9,200/t exw across major ports this week on lower port inventories and sponge iron price hike. However, deals are yet to be concluded at such high levels as domestic coal supplies remain ample,” highlighted traders.

Domestic coal prices stayed stable w-o-w. According to BigMint’s assessment, 5,000 GCV was unchanged at INR 5,750/t, while 4,500 GCV remained at INR 4,800/t. Coal availability remained comfortable across key consuming regions, keeping procurement largely need-based despite some improvement in downstream sentiment.

Sponge iron offers in India increased by INR 200-750/t d-o-d today. On a w-o-w basis, prices surged by INR 2,000/t ($22/t) in central and eastern India. The price rally in the spot market continued today, with sellers raising offers amid sustained active buying over the past few days and a steady inflow of forward bookings. Market sentiment remained firm, supported by a notable surge in enquiries across both semi-finished and finished steel segments.

India’s portside thermal coal inventories declined 3% w-o-w to 12.91 mnt in week 52 from 13.31 mnt in week 51. Unlike the previous week’s rotation-heavy pattern, the latest data pointed to net stock drawdown, driven by faster evacuation at several large ports and limited fresh arrivals amid the year-end slowdown. While a few ports recorded marginal stock builds, these were insufficient to offset broad-based declines across coasts.

Outlook

South African thermal coal market activity may gain momentum if the sponge iron price rally continues. However, domestic coal prices may continue to limit the sharp upside, with some auctions lined up.