India: Portside prices of Indonesian non-coking coal stable amid sluggish market

• Low industrial activity, holiday lull pressure trades
• High inventory levels reduce need for fresh imports

Indonesian non-coking coal prices at Indian ports remained stable w-o-w, primarily due to weak demand.

This subdued demand was linked to reduced industrial activity. Additionally, high coal stock levels at Indian ports and power plants diminished the immediate need for fresh imports, reducing buyers’ urgency.

Consequently, sellers were under pressure to offload excess inventory, but the lack of buyer interest resulted in slower trading and stagnant prices. The holiday season further slowed down deal finalizations, ultimately leading to reduced trading volumes and limited market activity.

Despite weak market sentiments Indonesian prices remained firm as India’s extension of the full capacity operation mandate for coal-based power plants is expected to sustain or increase demand for imported thermal coal, including from Indonesia. This will help maintain steady demand for Indonesian coal, potentially stabilizing or driving prices higher. However, competition from other coal suppliers could also influence market dynamics.

Prices of 3400 GAR coal at Navlakhi Port remained stable w-o-w at INR 4,700/tonne (t). At Kandla and Vizag, 4200 GAR coal prices held steady w-o-w at INR 5,900/t and INR 5,750/t, respectively. In contrast, 5000 GAR prices at Kandla rangebound to INR 7,800/t, while high-calorific value (CV) prices at Vizag fell by INR 50/t to INR 7,700/t.

Non-coking coal inventories at Indian ports saw a sharp growth of 6% to 13.93 million tonnes (mnt) in 1st week of CY’25, compared to 13.13 mnt in week 52 of CY’24, according to BigMint’s data.

Indonesian indexed tags inch down w-o-w

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $88.76/t, down $0.76/t w-o-w. Mid-CV (4200 GAR) prices decreased by $0.30/t w-o-w to $49.67/t, and low-CV (3400 GAR) was recorded at $30.43/t, a fall of $0.32/t w-o-w. All prices are on FOB basis.

In summary, weak demand and high inventories, amid holiday season kept the Indonesian non-coking coal market in India stable but sluggish. While prices remain steady, reduced industrial activity and a lack of urgency among buyers led to slow market movements.