- Tight supply sustains elevated prices
- Higher downstream costs support demand
NMDC, Nagarna, successfully auctioned 2,500 tonnes of crude coal tar on 12 June 2026 at a weighted average price of INR 56,700/t. This follows the company’s earlier auction on 5 June 2026, where 1,500 tonnes were booked at a weighted average price of INR 60,000/t.
Compared to the previous auction, the latest price declined by INR 3,300/t, or 5.5%. However, despite the correction, prices continue to remain at elevated levels, reflecting the underlying strength of market fundamentals.
Demand-supply imbalance supports market
Market participants indicated that crude coal tar availability remains limited, while demand from downstream industries continues to be strong. The persistent demand-supply gap has emerged as the key factor supporting prices, with buyers competing aggressively to secure available material.
Consumption from coal tar pitch, carbon black, graphite electrode, and refractory manufacturers remains healthy, keeping procurement activity active despite high price levels.
Another major factor supporting the market is the increase in the operating costs across downstream industries. As manufacturing costs rise, the replacement cost of raw materials has also moved higher, prompting consumers to procure crude coal tar at elevated prices.
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