- Firm amid higher pitch prices and strong buying interest
- Elevated levels likely, with Rourkela deal execution uncertain
SAIL Rourkela offered 10,000 tonnes of crude coal tar in its auction held on 24 September 2026, with the entire volume initially sold at a weighted average price of around INR 71,000/t. However, market participants indicated that coal tar pitch prices have been moving higher, prompting buyers to seek upward revisions in crude coal tar realisations.
Given the widening gap between the auctioned crude coal tar price and prevailing pitch-market expectations, there is uncertainty over whether the concluded deal will be executed at the reported price. Consequently, the 10,000-tonne Rourkela volume could potentially be re-offered in a subsequent auction if the transaction is not finalised, highlighted market sources.
Meanwhile, SAIL Bhilai offered 3,491 tonnes of crude coal tar in its 22 September 2026 auction, with the entire quantity sold at a weighted average price of INR 70,900/t. The firm realisation reflects improved market sentiment and stronger downstream coal tar pitch prices, which have enhanced buyers’ ability to absorb higher crude coal tar costs.
Similarly, SAIL IISCO offered 4,580 tonnes in its 22 September 2026 auction, with the complete volume sold at a weighted average price of INR 67,000/t. The lower realisation compared with Rourkela and Bhilai reflects plant-specific market conditions, buyer participation and regional price differentials, although the complete clearance of volumes indicates healthy buying interest.
Overall, crude coal tar auction prices have strengthened sharply, supported by firmer coal tar pitch prices and improved downstream realisations. Limited availability and stronger buyer interest are also providing support; however, the sustainability of current auction levels will depend on pitch-price movements and buyers’ ability to pass higher raw-material costs through to downstream markets.
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