- Domestic miners offer competitive alternatives
- Thermal coal stocks at Indian ports inch up w-o-w
Portside South African thermal coal prices in India remained largely stable this week, with RB2 (5500 NAR) holding at INR 8,650/tonne (t) exw-Gangavaram. Meanwhile, RB3 (4800 NAR) prices also remained unchanged w-o-w at INR 7,250/t.
Weak demand continued to limit market activity, as domestic miners offered competitive alternatives, reducing reliance on imported coal. Some traders offered RB2 (5500 NAR) at INR 8,100/t exw-Mangalore, while recent trades were recorded at INR 8,500/t exw-Vizag. Overall, market activity was subdued.
Thermal coal inventories at Indian ports increased marginally by 0.7% to 13.76 million tonnes (mnt) in week 6 of CY’25 from 13.66 mnt in week 5, as per BigMint data.
Market overview
South Africa’s export offers inch up: South Africa’s RB2 (5500 NAR) coal export offers increased by $1/t w-o-w to $83/t FOB, up from $82/t last week, while RB3 (4800 NAR) rose by $1/t to $63/t FOB, compared to $62/t last week.
Domestic thermal coal prices stable: Domestic thermal coal prices in India stayed mostly unchanged this week after the 12 Feb SECL auction. 4500 GCV coal prices remained at INR 5,000/t, while 5000 GCV stood at INR 5,950/t, both exw-Bilaspur. Prices were expected to fall substantially in SECL’s auction conducted last week. However, stable import offers prevented a drop.
Sponge iron prices edge up: Sponge C-DRI prices were assessed at INR 25,900/t exw-Rourkela, up INR 200/t from INR 25,700/t last week.
Outlook
Portside South African coal prices are likely to remain under pressure unless demand picks up. Domestic miners continue to offer competitive alternatives, reducing the need for imports. Traders may adjust prices based on inventory levels, but a weak market sentiment suggests limited movement in the near term.
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