- Durgapur prices increase by INR 1,800/t despite lower offered volume
- Steady buyer participation supports domestic crude coal tar market
Steel Authority of India Ltd (SAIL) successfully concluded crude coal tar auctions at its Bhilai and Durgapur steel plants on 25 June 2026, with the entire offered quantities allocated at both locations. While Bhilai’s auction marked a recovery after an unsuccessful sale earlier this month, Durgapur recorded stronger price realisation, reflecting steady domestic demand despite lower auction volumes.
Bhilai auction recovers after unsuccessful June sale
SAIL’s Bhilai Steel Plant successfully auctioned 2,992 tonnes (t) of crude coal tar, with the entire quantity sold at an average weighted price of INR 54,250/t. The auction witnessed a notable improvement compared to the previous sale held on 15 June 2026, when an offering of 2,011 tonnes remained unsold due to subdued buyer interest. Market participants had adopted a cautious stance at the time, with the highest bid reaching only around INR 50,250/t, which was below the seller’s expectations.
The sharp increase in auction prices in the latest sale was primarily driven by the strengthening prices of Pitch Creosote Mixture (PCM), which improved the processing margins for downstream consumers. The recovery in PCM prices enhanced buyers’ willingness to pay higher prices for crude coal tar, resulting in stronger participation and complete absorption of the offered quantity.
Durgapur records stronger price realisation
SAIL’s Durgapur Steel Plant also concluded its auction successfully, selling the entire 4,000 t of crude coal tar at an average weighted price of INR 57,200/t.
Compared with its previous auction on 7 May 2026, where 10,500 t of quantity was allocated at an weighted average price of INR 55,400/t. The latest auction bid price increased by INR 1,800/t, or 3.2%, despite the significantly lower quantity offered. The higher price realisation suggests buyers remained willing to accept firmer offers amid balanced market fundamentals and controlled availability.
Market outlook
The successful conclusion of both auctions reflects stable procurement interest in India’s crude coal tar market. Bhilai’s recovery from the unsuccessful June auction points to improved buyer confidence, while Durgapur’s higher price realisation despite reduced auction volumes indicates continued support for prevailing price levels. Market participants are expected to closely monitor upcoming producer auctions and downstream demand to gauge the sustainability of the current pricing trend.
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