- Domestic coal prices remain firm at elevated levels
- E-auction premiums keep raw coal costs high
Indian washed coal prices increased marginally, with 38-39% FC (5,000 GCV) washed coal FOR Raipur rising INR 100/t to INR 10,100/t as of 7 October 2026 from INR 10,000/t previously. However, buying interest weakened at elevated levels, with market participants reporting that buyers were increasingly reluctant to purchase at current prices.
Buyers resist higher washed coal prices
Market participants said demand for washed coal has declined as buyers remain unwilling to accept the prevailing high price levels. Procurement has become more cautious, with buyers limiting purchases to essential requirements rather than actively building inventories.
A 10,000 t washed coal deal was concluded last week at INR 9,500/t plus GST, ex-plant Bilaspur, providing a reference point below the current Raipur market assessment.
Domestic coal prices remain firm
Ex-Bilaspur 4,500 GCV coal remained stable at INR 7,000/t, while 5,000 GCV coal was also unchanged at INR 9,000/t as of 6 October. Although domestic coal prices did not increase, they remained at elevated levels, keeping replacement costs for washeries high.
E-auction premiums keep raw coal costs elevated
Recent ECL and MCL e-auctions fetched premiums of around 200-300% for some grades, highlighting continued competition for domestic coal and elevated procurement costs.
However, the high auction premiums have not translated into stronger washed coal buying interest. Instead, downstream buyers have become more price-sensitive, limiting the ability of sellers to pass higher raw material costs through to the market.
Market sentiment
Washed coal sellers continued to face elevated raw coal costs, but demand weakened as buyers resisted higher offers. With domestic coal prices stable but e-auction premiums remaining high, the market was caught between firm input costs and softer buying interest.
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