- Prices rise in Paradip and Vizag amid firm export offers
- Buyers remain cautious of high offers and margin pressure
South African thermal coal prices at Indian ports increased further w-o-w amid firm export offers. As per BigMint’s assessment, exw-Paradip RB2 (5,500 NAR) rose to INR 10,600/t and RB3 (4,800 NAR) to INR 9,200/t, up by around INR 200-250/t w-o-w. At Vizag, RB2 increased to INR 10,500/t and RB3 to INR 9,100/t, both up by INR 250-300/t w-o-w.
Export offers remained elevated, with 4,800 NAR heard at $75-76/t FOB RBCT against bids near $72/t, while 5,500 NAR was offered at $92-93/t FOB. Despite firm pricing, market activity stayed muted. Vizag witnessed limited movement, Gangavaram reported no stock to offer, and Haldia remained without South African cargo. CIF Haldia was heard around $108/t and CIF Paradip near $106/t, but buyers resisted the hike. Ennore saw some trades, largely requirement-based, while most buyers stayed sidelined due to margin pressure and bid-offer gaps.
Portside inventories correct after recent high
Total portside thermal coal inventories across India declined 3.05% w-o-w to 13.63 mnt in the week ended 20 February, down from 14.06 mnt in the previous week. The decline indicated a partial correction after stocks had touched a 27-week high.
Although aggregate inventories eased, availability remained uneven across grades and ports. Absence of stock at select locations such as Haldia and Gangavaram continued to support elevated offers, even as enquiry levels weakened. The broader market appeared sluggish, with limited bulk transactions and thin liquidity.
Domestic coal prices strengthen, sponge sentiment weak
Domestic non-coking coal prices increased w-o-w amid stronger auction bids and firm imported coal trends. As per BigMint’s assessment, 4,500 GCV rose to INR 4,900/t and 5,000 GCV to INR 5,950/t exw Bilaspur. The firmer auction outcomes reflected improving domestic sentiment as imported prices remained elevated.
Sponge iron P-DRI DAP Durgapur rose by INR 100/t w-o-w to INR 25,100/t. However, the broader sponge iron market remained weak. On 25 February, prices declined by INR 50-500/t d-o-d across major regions due to sluggish finished steel demand. Buyers restricted purchases to immediate needs, anticipating further corrections. Producers trimmed spot offers despite firm raw material costs, but lower prices failed to revive liquidity. Market participants reported minimal enquiries and absence of bulk deals, reflecting subdued confidence across the steel value chain.
Outlook
Sentiment remains firm but quiet. Elevated export offers from South Africa and firm CIF levels continue to support portside prices, yet transaction volumes are limited due to buyer resistance. With most consumers having covered near-term requirements and sponge margins under pressure, enquiries are thin.
If buying interest slows further, export and portside offers may soften. However, absence of stock at select ports and persistent supply tightness could continue to underpin sentiment, even as actual trade activity remains requirement-driven and selective.
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