- Buyers cautious amid high base price levels
- Low auction volumes from SAIL triggers supply vacuum
India’s crude coal tar market witnessed a notable slowdown in September 2025, with total auction volumes plummeting to 28,431 tonnes (t) from 52,940 t in August, according to BigMint data.
The sharp contraction was primarily driven by lower offerings from Steel Authority of India Limited (SAIL) subsidiaries and a decline in the number of auctions conducted during the month.
Market participants also cited that elevated base prices curtailed buying interest, even as industrial consumption remained steady, resulting in muted trade activity across the segment. BigMint’s assessment of crude coal tar stood at INR 37,500/t ex-works eastern India in Sept’25, up from INR 35,600/t in Aug’25, reflecting a month-on-month (m-o-m) increase.
Limited offerings from SAIL units weigh on market activity
SAIL continued to dominate as the largest supplier, offering 24,871 t in September, sharply down from nearly 45,890 t in August. Among its units, Durgapur Steel Plant led the supply with 8,500 t, while Bhilai Steel Plant offered 8,055 t, of which 6,258 t were booked.
Supply to the market was further supported by NMDC Steel Limited (Nagarnar) and Rashtriya Ispat Nigam Limited (RINL), both of which maintained stable auction participation despite subdued market sentiment.
NMDC Steel and RINL fetch decent response
At NMDC Steel Limited, Nagarnar, participation remained firm, with 2,300 t fully booked at INR 36,100/t across two auctions held on 3rd and 29th September. The steady booking trend reflected buyer confidence at reasonable base levels.
Similarly, RINL-Vizag witnessed robust interest, selling 1,260 t at INR 37,050/t on 10 September an increase of INR 1,550/t from its previous auction indicating continued appetite from end users despite overall market sluggishness.
Prices hold firm across producers
While trading volumes dipped sharply, price movements remained range-bound to firm across producers, signaling selective yet resilient demand.
At SAIL-Rourkela, 1,100 t were sold at INR 37,500/t, marking a rise of INR 1,900/t from the previous event. SAIL-Durgapur sold its entire 8,500 t lot at a weighted average of INR 36,600/t, reflecting healthy demand at base levels.
Meanwhile, SAIL-Bhilai conducted four auctions throughout September, displaying a consistent upward trajectory in prices from INR 35,500/t on 1 September to INR 39,600/t by 26 September.
High base prices keep buyers cautious
Despite firm pricing trends, the broader market sentiment remained cautiously optimistic. The combination of limited supply and elevated base prices restricted aggressive participation, as many buyers preferred to hold back amid constrained availability.
Market outlook
Crude coal tar prices in India are expected to stay elevated in October amid limited supply. However, traders anticipate moderate price corrections if more auctions are held and base prices are rationalized, which could restore a healthier balance between demand and offtake in the coming months.
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