- FY-end, weak sponge iron demand weigh on prices
- Buyers prefer domestic coal amid stable supply
South African thermal coal prices at Indian ports declined sharply w-o-w on 2 April 2026, weighed down by weak demand, rising inventories, and fresh cargo arrivals. As per BigMint’s assessment, exw-Paradip RB2 (5,500 NAR) dropped by INR 500/t w-o-w to INR 11,400/t, while RB3 (4,800 NAR) fell by INR 250/t to INR 10,250/t.
Deals were heard at lower levels, including 1,000 t of RB2 at INR 11,150/t ex-Mangalore and another 5,000-t cargo at INR 10,800/t exw-Mangalore. Another deal for 15,000-t RB2 coal was concluded at INR 11,000/t exw Vizag.
Demand remains weak; FY-end slows activity
Market activity remained subdued, as it was the last week of FY’26, with enquiries limited and buyers largely adopting a wait-and-watch approach. Weak sponge iron demand earlier in the week and stable availability of domestic coal reduced dependence on imports, even as domestic auction premiums remained high.
Supply pressure rises with fresh arrivals
Fresh cargo arrivals led to a 5.8% w-o-w increase in portside stocks to 13.10 mnt, putting downward pressure on prices. Sellers holding older inventories resorted to competitive offers, while aggressive selling at west coast ports further softened sentiment.
Across ports, RB2 offers ranged around INR 11,600-12,010/t, while RB3 offers were heard near INR 9,600-10,130/t, indicating continued pressure on sellers to adjust prices.
Seaborne signals mixed; miners turn firm
In the seaborne market, 5500 NAR May offers were heard near $97/t FOB, 4800 NAR at $80/t, and RB4 SMX April around $74/t. A CFR India deal was heard at $113/t for a March-loading cargo.
Despite earlier weakness, sentiment improved later in the week as P-DRI sponge iron prices surged by INR 1,600/t w-o-w to INR 27,700/t DAP Durgapur, prompting miners to quote firmer offers amid expectations of demand recovery.
Domestic coal prices gain
Domestic non-coking coal prices increased by INR 50-250/t w-o-w, with 5,000 GCV at INR 6,600/t and 4,500 GCV at INR 5,200/t exw-Bilaspur, supported by strong participation and higher premiums in recent SECL auctions.
Traders indicated that some consumers preferred domestic coal amid stable availability, despite higher auction premiums, limiting import demand.
Outlook
While prices declined this week due to supply pressure and weak demand, the sharp recovery in sponge iron prices and firmer miner offers suggest a potential rebound if demand improves in the coming weeks.
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