India: Washed coal prices rise further on tight supply

• ROM shortage keeps washeries under supply pressure
• High SECL auction premiums lift raw coal costs

Indian washed coal prices strengthened further, with 38-39% FC (5,000 GCV) washed coal FOR Raipur rising INR 850/t w-o-w to INR 10,000/t as of 30 September 2026. Continued ROM coal shortages and limited offers remained the key drivers. High premiums in SECL’s 26 September e-auction also highlighted elevated raw coal procurement costs, keeping washed coal sellers firm.

SECL auction premiums signal higher raw coal costs

SECL’s 26 September e-auction allocated 194,000 t against 270,000 t offered, with strong bidding across several mine-grade combinations. G8 premiums exceeded 200% at Beherabandh, Jhilmili and Rajnagar, while Rampur Batura G6 and NCPH G6 attracted premiums of 178.1% and 156.9%, respectively. Damini G9 also recorded a 182.4% premium. Such elevated auction premiums indicated continued competition for selected domestic coal and added pressure to raw material costs for downstream users.

Domestic coal prices add further pressure

Ex-Bilaspur 4,500 GCV coal increased INR 100/t w-o-w to INR 6,500/t, while 5,000 GCV coal rose INR 300/t to INR 8,400/t as of 29 September. Higher domestic coal prices, alongside limited physical availability, increased replacement costs for washeries and reduced the scope for lower washed coal offers.

Sponge iron recovery supports washed coal

Sponge iron prices also recovered during the week, with PDRI ex-Raipur rising INR 1,400/t w-o-w to INR 29,150/t as of 30 September. Market sentiment improved as firmer finished steel demand and higher raw material costs supported seller confidence. However, buyers remained cautious at higher levels and continued to procure mainly as required. The firmer sponge iron market provided additional support to washed coal demand, while tight ROM availability remained the dominant factor.