- Post-monsoon demand may boost trade
- Freights rise on Indonesian loading delays
Indian portside Indonesian thermal coal prices remained largely stable during the week ending 25 July 2025. Market sentiment was underpinned by a combination of weak industrial demand, balanced inventory levels, and logistical bottlenecks caused by the ongoing monsoon season. While prices held firm, overall market activity remained subdued.
Price stability prevails across grades, ports
As per BigMint’s latest market assessment, Indonesian 5000 GAR thermal coal prices remained unchanged w-o-w at INR 7,150/t at Kandla Port and INR 7,050/t at Vizag. The 4200 GAR grade also held steady w-o-w, quoted at INR 5,700/t at Kandla and INR 5,600/t at Vizag.
However, the lower-calorific 3400 GAR coal witnessed a slight upward movement, rising by INR 50/t w-o-w to INR 4,350/t at Navlakhi Port.
Market participants highlighted firm trading sentiments, despite the lack of a significant improvement in sector-specific demand. According to a trader, “Price movements are largely freight-driven. Inquiries are limited for now, but improvement in buying interest is expected from mid-September.”
Portside inventories show marginal decline
Thermal coal inventories at Indian ports remained relatively stable during Week 29 of 2025, totalling 15.60 million tonnes (mnt), a slight decline from 15.84 mnt in the previous week. While overall stock levels showed minimal change, port-specific inflows and offtakes varied. Notably, Adani Enterprises reported a 5% w-o-w decline in its port holdings, highlighting fluctuating logistical dynamics.
Rising freights add upward pressure
Supramax freights on the Indonesia (East Kalimantan) – India (Navlakhi) route climbed up by $1.47/dmt w-o-w, reaching $15.58/dmt. The increase was attributed to falling water levels in Kalimantan, which hampered vessel movement and loading efficiency. These logistical constraints in Indonesia kept prices supported and, coupled with muted Indian demand and monsoonal delays, kept trade volumes limited.
Coal stocks at thermal power plants inch down
Coal stockpiles at Indian thermal power plants dropped to 55.19 mnt as of 24 July 2025, compared to 58.52 mnt in the previous week. While this volume remains sufficient for around 18 days of generation, 13 plants are currently operating with critically low stock levels. These shortages span domestic, imported, and washery-reject coal sources, pointing to persistent inefficiencies in supply allocation and transportation.
Global prices edge up, but cautious sentiment continues
International thermal coal prices showed marginal upward movement during the week. Indonesian 5800 GAR coal edged up by $0.06/t w-o-w to $72.51, while 4200 GAR rose by $0.27/t to $40.45. The 3400 GAR grade also recorded a gain of $0.46/t to $28.39. Despite the modest increases, market sentiment remains cautious amid uncertain demand recovery in key importing regions.
Market outlook
The Indian portside thermal coal market is expected to remain stable in the near term, with limited demand and firm prices. Trade activity may improve post-monsoon, while logistical bottlenecks and uneven power plant supplies could persist. Globally, market direction will be shaped by Indonesian supply, freight trends, and regional demand recovery.
Leave a Reply