- Thermal coal inventories at Indian ports rise
- Indonesian coal prices move in narrow range
The thermal coal market in Indonesia remained stable w-o-w, with no significant changes in prices. In India, portside prices of Indonesian thermal coal also held steady w-o-w, amid a balanced demand-supply situation. Notably, there were ample coal stocks at Indian power plants.
Portside coal price trends
On 4 April, prices of various grades of Indonesian thermal coal remained unchanged w-o-w at key ports in India, with 5000 GAR at INR 7,800/t at Kandla, 3400 GAR at INR 4,950/t at Navlakhi, and 4200 GAR at INR 6,200/t at Kandla and INR 6,100/t at Vizag. This suggests that the Indian market is in a relatively stable phase.
Coal stocks at Indian power plants inch up
India’s coal stocks at power plants edged up w-o-w. As of 2 April, coal inventories at Indian power plants stood at 58.02 million tonnes (mnt), sufficient to meet about 20 days of demand. This marks a small rise from the 56.87 mnt recorded on 27 March. However, concerns persist regarding critical stock levels at certain plants. Twelve domestic coal plants, seven imported coal plants, and four washery reject plants are approaching critical thresholds, which could potentially impact the continuity of power supply if inventories fall too low in the coming weeks.
Thermal coal inventories at Indian ports increase
Thermal coal stockpiles at Indian ports also increased by 4.8% w-o-w to 12.29 mnt in the 13th week of CY’25. This growth was primarily driven by higher stockpiles at key ports, providing a buffer against potential supply disruptions. While this improvement in port inventories is encouraging, it will be important to monitor future developments to ensure that coal stocks are sufficient to meet rising demand, especially during peak consumption periods.
Indonesian coal price updates
In Indonesia, coal prices experienced minor fluctuations over the past week. High-calorific value (CV) 5800 GAR coal dropped by $1.22/t to $82.91/t, while mid-CV 4200 GAR decreased by $0.20/t to $49.86/t. Conversely, low-CV 3400 GAR coal saw a modest increase of $0.21/t, to $33.04/t. These price movements show that lower-quality coal has become relatively more expensive compared to higher grades.
ESDM adjusts thermal coal reference prices for Apr’25
The Indonesian Ministry of Energy and Mineral Resources (ESDM) updated its thermal coal reference prices (Harga Batubara Acuna, or HBA) for the first half of April 2025. The ESDM increased the reference prices of higher-calorific value grades, while tags of lower-calorific value grades were either reduced or kept steady. In a shift from previous practice, the ESDM will now update these prices twice a month, on the 1st and 15th of each month, instead of the former monthly schedule. This change is aimed at providing more accurate and timely reflections of the market dynamics.
Conclusion
Looking ahead, the thermal coal market in both India and Indonesia may remain stable in the short term, but risks persist. The move to bi-monthly HBA price updates may allow for quicker market adjustments. Overall, while stability is expected, both countries must remain vigilant in managing inventories and addressing potential supply risks.
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