- Domestic coal continues to find favour over imports in India
- Weak global demand keeps imported coal and met coke markets subdued
India’s coal market remained largely stable during the week ended 31 July 2026, with comfortable domestic availability continuing to limit import demand despite firmer global replacement costs. Buyers across thermal coal, petcoke and met coke markets largely restricted purchases to immediate requirements, while seasonal monsoon conditions kept industrial consumption subdued. Domestic coal prices strengthened on robust auction premiums and healthy demand, whereas imported coal markets remained cautious amid ample inventories, stable freights and weak international steel demand.
Indonesian coal portside prices stable amid mixed HBA trends
Indian portside Indonesian thermal coal prices remained largely stable, as comfortable domestic coal availability and subdued industrial demand continued to limit fresh imports. BigMint assessed 5,000 GAR coal unchanged at INR 10,500/t at Kandla and INR 10,400/t at Vizag, while 4,200 GAR remained stable at INR 8,700/t and INR 8,600/t, respectively. Meanwhile, 3,400 GAR at Navlakhi declined by INR 100/t to INR 7,000/t. Despite weak buying, concerns over Indonesian production quotas, lower river levels affecting barge movement and firm freight rates continued to provide underlying support, preventing a sharper decline in prices. Indonesia’s Harga Batubara Acuan (HBA) thermal coal benchmarks showed mixed movements for the first half of August 2026, reflecting shifting market fundamentals across calorific value (CV) segments. High-CV prices decline 6% amid profit-taking, weaker spot buying while rally in lower-CV prices continues, driven by robust blending demand
South African portside prices increase on global cues
South African thermal coal prices at Indian ports increased further, supported by higher international replacement costs and firmer freight rates, although buying remained largely need-based. BigMint assessed RB2 (5,500 NAR) at INR 11,000/t ex-Paradip, up INR 450/t w-o-w, while RB3 (4,800 NAR) increased by INR 150/t to INR 9,150/t. At Vizag, RB2 rose by INR 250/t to INR 10,650/t and RB3 gained INR 150/t to INR 9,050/t. India’s thermal coal inventories at major ports remained broadly stable at 14.21 mnt, while domestic coal continued to offer cost advantage, limiting wider acceptance of higher imported coal offers despite improved sponge iron prices.
Indian thermal coal prices surge as monsoon tightens availability
Domestic non-coking coal prices rose sharply, supported by aggressive bidding in recent SECL spot e-auctions and stronger demand as imported coal remained expensive. BigMint assessed 5,000 GCV coal at INR 6,450/t ex-works Bilaspur, up INR 850/t w-o-w, while 4,500 GCV coal increased by INR 300/t to INR 4,600/t. Market participants said buyers actively competed for domestic coal ahead of the monsoon, while the widening price gap between imported and domestic coal encouraged greater reliance on domestic supplies, pushing prices higher.
Washed coal prices in India climb w-o-w
India’s washed coal prices increased further as tight availability of preferred ROM coal and slow SECL dispatches constrained production. Washeries continued facing shortages of the desired quality and quantity of feedstock, while higher logistics, electricity and maintenance costs supported firmer offers. BigMint assessed 38% FC (5,000 GCV) washed coal at INR 6,750/t FOR Raipur on 29 July, up INR 200/t w-o-w and INR 500/t from INR 6,150/t on 1 July. July’s SECL spot e-auctions also reflected strong competition for preferred mines, with Amadand mine G10 coal attracting a 140.5% premium and Chhal G11 a 20% premium, further limiting quality ROM coal availability for washeries and supporting washed coal prices.
Imported met coke eases, govt announces 5-year antidumping duty
India’s imported met coke prices declined amid weak steel demand and competitive overseas offers. BigMint assessed Indonesian-origin BF-grade met coke (65/63 CSR) at $308/t CFR India, down $4/t w-o-w. Although the government imposed a five-year definitive anti-dumping duty on imports from six countries, lower-than-provisional duty levels meant imported material remained competitive. Domestic BF-grade coke stayed at INR 35,150/t ex-Jajpur, while western India declined by INR 500/t to INR 33,500/t ex-Gandhidham. Softer Australian PHCC prices, weaker Chinese coke sentiment and cautious steel sector procurement continued to weigh on market sentiment despite improved policy clarity.
Petcoke prices steady
India’s imported fuel-grade petcoke market remained stable, with buying limited to immediate requirements amid seasonally weak cement demand. Comfortable inventories and balanced export availability kept trading activity subdued despite stable freight. US-origin high-sulphur petcoke offers were heard at $138-142/t CNF India. Market participants said cement producers continued delaying discretionary purchases, preferring to monitor post-monsoon demand recovery before booking fresh cargoes. Stable logistics and adequate global supply prevented any major price movement, while buyers remained disciplined as domestic fuel alternatives continued to offer competitive economics.
Coal freight softens
India-bound coal freight weakened, with softer Panamax rates reflecting limited cargo availability and subdued chartering activity. BigMint assessed Panamax freight from Hay Point to Paradip at $20.2/t, down $1.2/t w-o-w, while RBCT to Paradip declined by $0.4/t to $20.1/t. Supramax freight remained comparatively firm, with East Kalimantan-Navlakhi at $22.4/t, up $0.1/t, and South Kalimantan-Navlakhi at $21.8/t, up $0.8/t. Limited Indonesian cargo stems and ample vessel availability kept sentiment cautious, although selective cargo coverage prevented a sharper decline in freight rates.
Leave a Reply