- Indonesian and South African thermal coal prices hit multi-year highs
- Washed coal, PHCC and met coke strengthened amid tight availability
Indian coal prices strengthened across imported and domestic segments in the week ended 11 September, led by tight Indonesian and South African supply, lower export/import availability and higher replacement costs. Indonesian 4,200 and 5,000 GAR prices reached around four-year highs, while South African coal also surged despite cautious Indian buying. Washed coal prices firmed on tight ROM availability and higher feedstock costs, while rising coking coal and met coke prices further reflected constrained supply and elevated input costs.
Tight Indonesian supply pushes thermal coal prices to multi-year highs
Indian portside Indonesian thermal coal prices rose sharply w-o-w in the week ended 11 September, with 4,200 GAR and 5,000 GAR reaching around four-year highs, supported by tighter Indonesian supply, reduced cargo availability, active Chinese buying and firm replacement costs.
Notably, Indonesia’s non-coking coal exports fell 16.1% y-o-y to 26.95 mnt in August 2026, further tightening seaborne availability and strengthening sellers’ bargaining power.
Prices climb w-o-w amid supply constraints 5,000 GAR rose INR 300/t to INR 11,900/t Kandla, while 4,200 GAR gained INR 400/t to INR 10,000/t. Meanwhile, 3,400 GAR increased INR 250/t to INR 8,000/t, an all-time high for the assessment, supported by strong demand and its cost competitiveness.
South African thermal coal prices surge on tighter supply
South African thermal coal prices at Indian ports rose sharply w-o-w as of 11 September, supported by tight supply, higher global energy costs and firm steel demand. RB2 (5,500 NAR) increased INR 200/t to INR 13,200/t at Paradip, while RB3 rose INR 550/t to INR 11,550/t. Despite active enquiries, buyers remained cautious at elevated levels.
Offers firmed across Indian ports, with no deals reported at current levels. CNF Gangavaram RB2 rose to $129-130/t in September, highlighting sharply higher import replacement costs.
As per data maintained by BigMint, India’s non-coking coal imports from South Africa fell 42% m-o-m to 1.1 mnt in Aug’26, as higher replacement costs and firm global prices reduced fresh procurement. Lower imports and domestic supply constraints tightened availability, keeping South African coal prices firm despite weaker Indian demand. However, consistent demand from other destinations continued to support prices and limit downside pressure on South African cargoes.
Indian washed coal prices firm on tight ROM availability
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.
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.
BigMint coking coal index gains $7/t w-o-w on firm global market
BigMint’s premium hard coking coal (PHCC) index was assessed at $306/tonne (t) CNF Paradip, India, on 11 September 2026, up by $7/t w-o-w. The index has continued it’s rally for yet another week amidst global cues.
Market reported deal for 75,000t Australian Premium Mid Vol Goonyella trade heard done on 10 Sept from miner source at $283.00/mt FOB Australia and laycan 21-30 Oct to an Indian mill. However, it could not be confirmed till the time of publishing this report.
Indian met coke prices surge on tight supply and higher input costs
India’s met coke market continued its sharp uptrend in the week ended 10 September, driven by tight availability, higher coking coal costs and elevated import replacement costs. BF-grade coke rose INR 1,500/t to INR 41,500/t ex-Jajpur, while western India gained INR 3,000/t to INR 38,000/t ex-Gandhidham, both near 3.5-year highs.
Limited spot availability and low producer inventories strengthened buyers’ urgency to secure material, with market participants indicating that the market remained extremely tight and purchases increasingly being made to cover immediate requirements rather than for inventory building.
Notably, Merchant met coke production dropped 30% y-o-y to 2.5 mnt during Jan-Aug 2026, further tightening domestic supply. Imported Indonesian BF-grade coke (65/63 CSR) also rose $4/t w-o-w to $361/t CFR India, amid higher FOB prices, freight and limited vessel availability.
India’s imported met coke market strengthened further, with Indonesian BF-grade met coke (65/63 CSR) rising by $4/t w-o-w to around $361/t CFR India.
India imported pet offers moved to $160
Nuvoco Vistas indicated offers around $160/t but had previously secured material closer to $140/t and was also consuming domestic petcoke. Ramco Cements indicated comfort using US NAPP coal when petcoke moved into the mid-$150s. Orient Cement described petcoke as very firm and was waiting for a correction because US coal had also risen. JK Lakshmi was hearing imported petcoke above $160/t.
BigMint assessed US-origin imported pet coke prices higher by $4/t w-o-w to $160/t CNF Vizag, while CNF Kandla prices increased by $3/t to $157/t.
Indian consumption has already responded to tighter availability and higher prices. Petcoke consumption during April-August FY27 fell to 6.82 mnt from 8.84 mnt a year earlier, while imports during April-July declined to 2.20 mnt from 3.82 mnt. August imports were approximately 0.6 mnt, versus 1.8 mnt in August 2025.
The decline should not be read simply as weaker cement demand. Tight seaborne availability and higher prices have forced producers to draw on inventories, consume more domestic petcoke and increase coal substitution where technically possible.
US NAPP prices further rise sharply
NAPP coal prices in India rose further sharply this by 9th September by INR 600/t, at around INR 17,600/t ex-Kandla against the last week offers reaching at INR 17,000 as per the prices released by BigMint.
NAPP remains attractive because of its high calorific value and sulphur characteristics, which allow it to substitute petcoke in suitable cement kilns. But its economics have deteriorated. US East Coast-to-India freight was around $52/t in early September, while market feedback suggests some US suppliers are discussing around $115/t FOB for Q1 2027, with limited forward availability.
Combined stocks have fallen nearly 48% in two weeks. Yet scarcity has not generated aggressive restocking because ex-wharf prices have moved towards INR 17,000-18,000/t.
Freight market remains firm
India-bound coal freights remained firm during the week ended 11 September 2026, with stronger South Africa-India activity and steady Australia-India demand supporting vessel owners’ rate ideas.
Freight from Hay Point, Australia, to Paradip rose $0.3/t w-o-w to $23.5/t, while RBCT-South Africa to Paradip gained $1.6/t to $22/t. On the Indonesia-India routes, East Kalimantan-Nawlakhi held steady at $21.9/t, while South Kalimantan-Nawlakhi increased $0.9/t to $21.8/t.
Tighter prompt tonnage and improving India-bound enquiry supported the Panamax market, while stronger enquiry from South Kalimantan kept Supramax sentiment firm. Activity from East Kalimantan remained subdued amid limited fresh enquiry
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