- Magdalla’s temporary closure causing congestion
- Stocks up at some utilities, critically low at others
The Indian portside market for Indonesian thermal coal continues to face bearish conditions, weighed down by weak demand, rising domestic supplies, and a growing influx of vessels.
The situation has been further complicated by the temporary closure of Magdalla Port, which has forced a diversion of numerous cargoes to Navlakhi and nearby ports, leading to congestion and increased selling pressure, market participants informed BigMint.
Limited demand, stable prices at key ports
Demand for Indonesian thermal coal remains limited and is primarily driven by immediate, sector-specific requirements. There has been no notable new buying activity, with market sentiment staying subdued.
Despite the overall bearish tone, thermal coal prices at major Indian ports remained largely stable as of 16 May 2025. The 5000 GAR grade held firm at INR 7,800/tonne (t) at Kandla.
Similarly, the 4200 GAR stayed unchanged at INR 6,200/t at Kandla and INR 6,100/t at Vizag. The 3400 GAR grade was the only exception, registering a marginal decline of INR 50/t to INR 4,550/t at Navlakhi, reflecting localised selling pressure amid port congestion.
Rising port inventories, power plant stockpiles
According to data from BigMint, thermal coal inventories at Indian ports increased by over 5% in the 19th week of 2025, reaching almost 15 million tonnes (mnt), up from 14.22 mnt in the previous week. This rise in stockpiles underscores the tepid demand environment and the continued arrival of coal shipments, further adding to the oversupply.
Coal stock levels at Indian power plants also improved during the same period. As of 15 May, total coal availability stood at 57.439 mnt, up from 57.196 mnt a week earlier. This level of inventory is adequate to meet approximately 19 days of consumption under normal operating conditions.
However, concerns persist regarding critically low coal inventories at several power plants. These include 11 facilities that rely on domestic coal, six dependent on imported coal, and four that utilise washery rejects.
Indonesian index price trends show divergence
Indonesian thermal coal index prices displayed a varied performance in the international market, driven by shifting demand across different calorific grades. The high-energy 5800 GAR coal experienced a notable decline of $2/t, settling at $77.92/t.
In contrast, the mid-grade 4200 GAR rose slightly by $0.41/t to $48.64/t, while the low-grade 3400 GAR saw a moderate increase of $0.43/t to $33.85/t. These trends highlight growing global interest in lower grades.
Outlook
With strong domestic supply and subdued demand, the Indian portside thermal coal market is expected to stay under pressure in the near term. Ongoing port congestion and rising inventories may further depress prices, especially of lower grades. However, a rebound in industrial demand or changes in the import policy could shift market conditions.
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