India: Crude coal tar auction volumes fall in Aug’25; high base prices limit offtake

• SAIL subsidiaries offer lower volumes in Aug’25
• Prices stay range-bound despite cautious sentiment

India’s crude coal tar market witnessed a steep decline in supply during August 2025, with total auction volumes plunging to 52,940 tonnes (t) from 91,052 t in July, as per data from BigMint.

The contraction was primarily driven by a reduction in the volume offered by Steel Authority of India Limited (SAIL) subsidiaries, alongside fewer auctions being conducted through the month.

Additionally, buyers showed reluctance to procure material at elevated starting prices. This mismatch between base levels and market acceptance left significant volumes unsold.

Company-wise auction trends

SAIL remained the dominant supplier, contributing 45,890 t against almost 77,000 t in July, supported by NMDC Steel Limited and Rashtriya Ispat Nigam Limited (RINL). Among individual units, SAIL-IISCO led with 19,300 t, while SAIL-Rourkela offered 18,000 t but managed to sell only 9,000 t due to muted buyer response.

NMDC Steel Limited, Nagarnar, witnessed stronger traction, offering 6,000 t, which were fully booked, reflecting steady demand at base prices that market participants considered reasonable. However, in several cases, high reserve prices dampened participation, leading to unsold quantities across auctions.

Price movements remain range-bound

Despite the supply decline, price trends across producers remained relatively stable, reflecting cautious but sustained buyer interest.

• SAIL-Rourkela: The first auction on 26 August failed to attract bids due to high base pricing. However, the second auction on 30 August witnessed 9,000 t booked at INR 35,602/t ex-works.
• SAIL-Bhilai: At the auction on 11 August, 1,497 t were sold at INR 38,000/t, while the auction on 26 August for 1,997 t remained unsubscribed.
• NMDC Steel: Both auctions on 12 and 18 August witnessed 3,000 t sold at a steady INR 35,000/t, signalling pricing comfort for buyers.
• SAIL-Durgapur: Of the 3,000 t offered on 18 August, just 100 t were booked at INR 39,900/t. On 26 August, 1,400 t were sold from 8,100 t at INR 36,575/t.

Outlook

Looking ahead, the crude coal tar market is expected to stay influenced by supply adjustments from SAIL and NMDC, along with buyer sensitivity to base prices. Unless base levels are rationalised, demand may remain uneven. However, stable pricing trends indicate that while buyers are cautious, they continue to secure material where valuations appear fair.