- ROM coal costs continue to pressure washeries
- Sponge iron demand remains largely need-based
Indian washed coal prices continued to strengthen in the assessment week ended 9 September 2026, with 38-39% FC (5,000 GCV) washed coal FOR Raipur rising INR 200/t w-o-w to INR 8,300/t. Higher ROM costs and constrained production continued to support seller offers, while downstream buying remained selective. Domestic non-coking coal prices also increased, with 5,000 GCV coal reaching INR 8,000/t, up INR 100/t, and 4,500 GCV coal rising to INR 5,900/t, also up INR 100/t.
Trade sources highlighted there are limited offers at the moment in the market.
Tight ROM availability supports prices
ROM availability remained a key constraint for washeries, keeping replacement costs elevated. Higher domestic coal prices continued to raise feedstock costs, while limited production restricted availability of washed coal. Sellers therefore remained firm and continued to prioritise existing commitments over aggressive fresh bookings.
The latest increase in domestic coal prices added further support to washed coal values, despite relatively cautious demand from buyers.
Sponge iron market turns weaker
Sponge iron prices weakened during the week, with PDRI ex-Raipur falling INR 350/t w-o-w to INR 28,700/t as of 9 September. Market sentiment remained cautious as finished steel buying was slow and sponge iron demand stayed largely requirement-based.
Market participants had reported higher offers following buying activity earlier in the week, but the slower pace of finished steel demand limited follow-through. Buyers remained reluctant to build inventories and largely adopted a wait-and-watch approach.
For washed coal, however, the impact of weaker sponge iron prices was partly offset by higher ROM and domestic coal costs. Consequently, supply-side cost pressure remained the stronger driver of washed coal prices, keeping the market firm despite softer downstream sentiment.
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