- Ample domestic supply leads to need-based buying
- Indonesian coal prices edge up globally on tight supply
The Indian portside market for Indonesian thermal coal remained stable during the week ending 22 August 2025. Steady arrivals, balanced supply-demand conditions, and muted consumption trends shaped the week’s trading dynamics.
Prices across key grades remain stable
BigMint’s assessments of portside prices indicated w-o-w stability across most Indonesian thermal coal grades. The 5000 GAR grade held firm at INR 7,150/t at Kandla and INR 7,050/t at Vizag, while the 4200 GAR grade remained unchanged at INR 5,700/t and INR 5,600/t, respectively.
Similarly, the 3400 GAR grade was assessed steady at INR 4,450/t at Navlakhi, supported by localised supply constraints. This uniformity in pricing underscores the adequacy of portside supplies and the lack of aggressive buying interest among market participants.
Need-based demand exerts pressure
Market activity remained subdued, with participants limiting purchases to need-based procurement. Buyers avoided large-scale restocking, as thermal power plants maintained comfortable inventory levels, and steady domestic coal availability reduced immediate reliance on imports. Additionally, industrial demand remained cautious, and coal consumption was moderate overall.
On the other hand, South Eastern Coalfields Ltd (SECL) allocated 261,750 tonnes (t) of coal in its auction held on 16 August 2025. The auction witnessed mixed demand, with premiums firming for select grades, particularly mid-to-high CV coal, while lower grades saw allocations closer to reserve levels.
Portside inventories rise, freights hold firm
India’s portside thermal coal stocks rose 1.2% w-o-w to 13.86 mnt in Week 33, driven by fresh arrivals at western and southern ports, even as some eastern ports experienced declines.
On the freight side, Supramax rates on the East Kalimantan-India (Navlakhi) route held largely steady at $15.93/dry metric tonne (dmt), reflecting stable shipping demand and sufficient vessel availability.
Power sector coal stocks: adequate but uneven
Coal inventories at Indian thermal power plants edged down to 51.89 mnt as of 20 August 2025, compared with 51.98 mnt a week earlier. These reserves remain sufficient for around 17 days of power generation, offering comfort at the system level.
However, 15 power plants continued to operate at critical stock levels, spanning domestic, imported, and washery-reject coal categories. This underscores persistent supply chain coordination challenges, even as aggregate reserves appear healthy.
Global market movement
In the international market, Indonesian coal prices registered modest gains w-o-w, supported by tight spot availability and selective restocking by East Asian buyers. The 5800 GAR grade increased by $0.33/t to $75.5/t, the 4200 GAR grade rose by $0.43/t to $43/t, while the 3400 GAR grade edged up by $0.14/t to $31/t. Overall, global market sentiment remains cautiously optimistic, with demand recovery across key importing regions progressing at a measured pace.
Outlook
India’s portside thermal coal market is expected to stay stable in the near term, with steady arrivals, comfortable inventories, and muted industrial demand limiting import urgency. While low-grade supply tightness may offer brief price support, stable freights will keep landed costs predictable.
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