- ROM availability remains constrained amid monsoon disruptions
- Sponge iron prices strengthen despite cautious buying
Washed coal prices increased sharply this week as tighter run-of-mine (ROM) coal availability and higher domestic coal replacement costs supported offers. BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 7,600/t, up INR 550/t w-o-w. Washeries continued to face difficulty securing adequate feedstock as monsoon conditions slowed coal dispatches and disrupted mining and logistics. At the same time, higher SECL auction realisations raised replacement costs, while sponge iron prices continued to strengthen. However, fresh buying remained cautious, with consumers largely covering immediate requirements.
ROM shortages keep washeries under pressure
ROM coal availability remained the key constraint for washeries. Monsoon-related disruptions continued to slow SECL dispatches and affect the consistency of coal grades reaching the market. Lower auction frequency across CIL subsidiaries also limited fresh availability, making it more difficult for washeries to secure suitable feedstock.
Several sellers remained firm on offers, with limited willingness to reduce prices amid the supply constraint. The resulting gap between available ROM and consumer enquiries continued to support washed coal prices.
The latest SECL Coal Junction auction also reflected firm bidding for selected grades. For instance, Jhilmili G8 sized ROM had an base price of INR 2,318/t, while the final bid reached INR 4,128/t. Amera G8 similarly moved from an base price of INR 2,318/t to a final bid of INR 4,618/t. Such elevated auction realisations increased replacement costs for downstream coal users.
Domestic coal prices strengthen further
Domestic coal prices also moved higher as auction premiums filtered into the spot market. 5,000 GCV coal ex-Bilaspur increased INR 550/t w-o-w to INR 7,400/t, while 4,500 GCV coal rose INR 250/t to INR 5,450/t as on 25 August 2026.
Strong competition for selected SECL grades supported higher final bid prices, although the rise was not accompanied by a broad increase in spot-market activity. The market remained influenced by supply availability and replacement economics rather than aggressive inventory building.
Sponge iron offers gain despite cautious buying
Domestic sponge iron prices strengthened further, with PDRI ex-Raipur rising INR 1,400/t w-o-w to INR 28,500/t. Producers continued to maintain firm offers as higher coal and pellet costs increased production pressure.
Market participants indicated that some producers were already carrying advance bookings and remained focused on fulfilling committed volumes, limiting their willingness to negotiate lower prices. Buyers, meanwhile, generally held sufficient inventories and showed limited appetite for aggressive fresh purchases.
Fresh enquiries remained subdued and transactions were largely requirement-based. However, elevated raw material costs continued to provide a floor to sponge iron prices. Producers in some regions were facing margin pressure because higher pellet and coal costs were not being fully recovered through finished sponge iron prices.
For washed coal, this combination of higher ROM replacement costs and firm sponge iron prices continued to support seller sentiment, even though actual demand remained selective.
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