- Sponge iron prices rise w-o-w
- Domestic prices dip amid ample supply
Portside prices of South African thermal coal in India remained stable-to-slightly higher w-o-w at Gangavaram Port. RB2 (5500 NAR) rose by INR 50/t to INR 8,450/t exw, while RB3 (4800 NAR) remained unchanged at INR 7,100/t exw.
Thermal coal inventories at Indian ports fell slightly by 2% w-o-w to 11.83 million tonnes (mnt) in Week 11 of CY’25, down from 12.08 mnt in the previous week, as per BigMint data.
“Offers for RB3 have found some support, particularly at eastern and southern India ports, driven by limited cargo availability. With no offers for March deliveries, most traders are now offering April cargoes. However, the rise in sponge iron prices has yet to translate into higher coal prices,” a trader informed.
Market sentiments in portside coal prices
- South African coal export offers decline: Export offers continued to soften, with RB2 falling by $1.5/t w-o-w to $76/t FOB. Prices of RB3 dropped by $1.5/t to $58.5/t FOB.
- Domestic coal prices fall in recent auctions: Domestic coal prices declined w-o-w amid ample coal availability. The 4500 GCV grade fell by INR 100/t to INR 4,500/t, while the 5000 GCV dropped by INR 250/t to INR 5,100/t exw-Bilaspur. In SECL’s recent auction, bid prices dropped, resulting in a fall in domestic coal prices.
- Domestic sponge iron prices rise w-o-w: Indian C-DRI prices increased by INR 1,000/t w-o-w to INR 27,400/t exw-Rourkela from INR 26,400/t last week. Improved trading and rise in steel prices post-announcement of the safeguard duty has resulted in a hike in sponge offers.
Outlook
Market activity remained subdued, though concerns over limited cargo availability at Vizag and Gangavaram ports offered some regional support. Railway disruptions in South Africa are expected to impact shipments in April, potentially tightening supply and lending support to prices in the coming weeks.
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