- SAIL top supplier, with nearly 80,000 t
- Bid prices decline towards end-May’25
India’s crude coal tar market saw a notable increase in supply during May 2025. However, despite the surge in availability, demand remained sluggish from key industrial sectors. The lack of sufficient orders from these industries in May has led to expectations of a similar market scenario in June 2025.
Key contributors to supply surge
According to data compiled by BigMint, Steel Authority of India Limited (SAIL) emerged as the largest contributor to the country’s crude coal tar supply in May. SAIL offered 78,917 tonnes (t) of crude coal tar from its multiple steel plants, including Bhilai, Bokaro, Durgapur, Rourkela, and IISCO. This marked a significant increase in supply compared to April, when the total quantity supplied was only 19,439 t. It is worth noting that SAIL’s Rourkela unit did not conduct any auctions in April, which led to a relatively low supply from the company during that month.
The rise in supply from SAIL can be attributed to improved operational efficiency across its plants, as well as a strategic move to meet growing demand in the domestic market. However, the large supply volume was not entirely absorbed due to the lack of strong demand from end-users.
Other suppliers offer lower volumes
NMDC Steel Limited offered around 300 t of crude coal tar in May, a significant drop compared to 7,000 t in April. This substantial reduction in supply was linked to lower production and reduced auction activities. Despite the lower volume, NMDC Steel’s average auction price stood at INR 36,700/t, steady m-o-m.
Rashtriya Ispat Nigam Limited (RINL) also held crude coal tar auctions in May, offering approximately 2,520 t, a drop from 4,200 t in April. This decrease is indicative of a general trend where steel producers are adjusting their supply levels in response to fluctuating demand.
Bid prices drop in May’25 auctions
SAIL Bhilai auctioned 1,802 t of coal tar on 19 May, with the entire quantity sold at a weighted average price of INR 38,605/t. A second auction on 29 May saw 1,788 t sold at an average price of INR 37,083/t, with the reduction attributed to a dip in buyer interest and market correction.
Outlook: Supply to outweigh demand
Sluggish demand from aluminium and graphite smelters has been a primary factor in the market’s subdued growth despite increased supply. Both sectors typically rely on crude coal tar for the manufacture of carbon electrodes, but they have faced production slowdowns in recent months, leading to fewer orders.
The continued lack of demand from these sectors may persist into June, which could affect overall market dynamics given that there is an abundance of supply. Industry experts believe that it will be essential for steel producers and auction participants to monitor the evolving demand situation in order to maintain pricing stability.
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