- Domestic coal prices climb up on tight supply but demand remains slow
- Portside South African coal prices rise on higher global benchmarks
Global and Indian coal markets remained cautious in the week ended 25 July 2026 as subdued steel and industrial demand limited spot buying. Consumers largely relied on comfortable inventories and requirement-based procurement, while domestic coal remained the preferred fuel because of its cost competitiveness.
International markets drew support from higher freight costs and geopolitical developments, but weak downstream demand prevented any meaningful recovery in trading activity. Market participants remained focused on policy developments, seasonal factors, and global supply trends before committing to fresh purchases.
Weak demand keeps Indonesian thermal coal prices stable
Indian portside prices of Indonesian thermal coal remained largely stable in the week ended 24 July 2026 as weak industrial demand and ample domestic coal availability limited import buying. Premium 5,000 GAR coal was unchanged at around INR 10,500/t at Kandla and INR 10,400/t at Vizag, while 4,200 GAR held steady at INR 8,700/t and INR 8,600/t, respectively.
However, 3,400 GAR prices rose by around INR 100/t to INR 7,100/t at Navlakhi, supported by ceramic sector demand and limited domestic lignite availability. Indonesia maintained strong coal production, while its upcoming single-gate export mechanism and potential Chinese buying were expected to support seaborne prices despite continued weak Indian import demand.
South African thermal coal prices firm up
South African thermal coal prices at Indian ports increased during the week ended 24 July as higher global benchmark prices and geopolitical tensions lifted replacement costs. BigMint assessed RB2 ex-Paradip at INR 10,550/t, up INR 100/t w-o-w, while RB3 rose INR 100/t to INR 9,000/t. At Vizag, RB2 increased INR 100/t to INR 10,400/t and RB3 rose INR 100/t to INR 8,900/t.
Despite firmer international offers, buying activity remained limited as consumers relied on domestic coal. A wide bid-offer gap and subdued sponge iron demand continued to restrict imports, with purchases remaining largely requirement-based.
Domestic coal retains price advantage
Domestic and washed coal prices strengthened during the week ended 24 July as tight monsoon-driven supply supported the market. BigMint assessed 5,000 GCV coal at INR 5,600/t exw Bilaspur and 4,500 GCV coal at INR 4,300/t, both up INR 50/t w-o-w. Meanwhile, 38% FC washed coal (5,000 GCV) FOR Raipur increased INR 200/t to INR 6,550/t amid lower mine dispatches and constrained ROM coal availability.
Although weak sponge iron and finished steel demand kept procurement cautious, buyers continued to prefer competitively priced domestic coal over imported South African cargoes.
BigMint coking coal index declines further
BigMint’s premium hard coking coal (PHCC) index declined $7/t w-o-w to $243/t CNF Paradip on 24 July 2026, approaching a four-month low amid weak buying interest and abundant unsold cargoes at Indian ports. India’s coking coal imports dropped 25% m-o-m to 5.6 mnt in June from 7.5 mnt in May, while Australian FOB price indications eased to $220-222/t.
Domestic met coke prices remained stable at INR 35,150/t ex-Jajpur and INR 34,000/t ex-Gandhidham, whereas softer HRC prices and slightly higher Australia-India freight continued to weigh on market sentiment. Further price declines were expected amid sluggish steel demand and cautious Chinese buying.
Policy uncertainty caps imported met coke trade
India’s met coke market remained largely stable during the week ended 23 July 2026 as uncertainty over the anti-dumping duty extension and subdued steel demand kept buyers cautious.
BigMint assessed prices of Indonesian BF-grade metallurgical coke (65/63 CSR) down by $6/t w-o-w to $312/t CFR India, while domestic BF-grade prices remained unchanged at INR 35,150/t ex-Jajpur and INR 34,000/t ex-Gandhidham. Foundry-grade coke also held steady at INR 36,400/t ex-Rajkot.
Lower Australian premium hard coking coal prices and weaker Chinese coke sentiment continued to pressure imported offers, although limited Indonesian cargo availability was expected to prevent any sharp price decline in the near term.
US thermal coal prices strengthen
India’s US Northern Appalachian (NAPP) coal market strengthened during the week as domestic seller indications increased INR 200/t w-o-w to INR 14,200/t despite weak monsoon-season demand and subdued portside lifting.
Higher freight costs, tighter prompt retail availability, and concerns over limited supply from incoming cargoes supported prices, while steady demand from the cement sector provided additional support.
The improved competitiveness of US NAPP thermal coal, along with ample domestic coal availability, encouraged cement producers to limit imported petcoke purchases and continue flexible, requirement-based fuel procurement.
Petcoke buying stays subdued as offers rise globally
India’s imported petcoke market remained subdued despite firmer international offers supported by higher freight costs and geopolitical uncertainty. US high-sulphur petcoke offers increased to around $141-145/t CFR India, but buying interest remained weak as cement producers delayed purchases amid comfortable inventories and favourable alternative fuels.
Major consumers continued relying on domestic coal and US NAPP thermal coal while waiting for more attractive import prices. As a result, transactions remained limited, with procurement restricted to immediate requirements rather than speculative buying.
Freight market remains firm
India-bound coal freights remained firm during the week ended 24 July 2026 as higher bunker prices and active Australian met coal shipments supported vessel owners’ rate expectations.
Freights from Hay Point, Australia, to Paradip increased $0.3/t w-o-w to $21.2/t, while the RBCT, South Africa-Paradip route rose $1.2/t to $20.5/t. Freights from East Kalimantan, Indonesia, to Navlakhi climbed $2.4/t to $22.3/t.
Although limited cargo enquiries and comfortable vessel availability kept chartering activity subdued, higher voyage costs and steady Australian and South African loading programmes continued to support freight levels.
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