- Most end-users complete procurement ahead of festive break
- Portside inventories, domestic coal prices hold steady w-o-w
South African portside coal offers in India held steady w-o-w, with RB2 assessed at INR 8,200/t and RB3 at INR 7,100/t across Paradip, Vizag, and Gangavaram. Market activity was subdued, as the Diwali holidays slowed down trading, with most end-users having completed procurement ahead of the festive break. Two deals were heard from Dhamra — one for RB2 at INR 8,400/t and another for around 40,000 t at INR 8,700/t.
On the export front, South African RB2 offers also stayed unchanged at $71.5/t FOB, while RB3 held at $60/t. Freights for Panamax cargoes on the South Africa-India route edged up by $0.08/t w-o-w to $14.8/t, reflecting stable vessel movement.
Portside inventory, domestic market update
India’s portside thermal coal inventories were largely unchanged, dipping by 0.7% to 13.17 mnt in Week 42 from 13.26 mnt in Week 41. Restocking stayed moderate amid slower vessel arrivals. Domestic coal prices also remained stable, with 5,000 GCV at INR 6,250/t ex-Bilaspur and 4,500 GCV at INR 5,200/t. Market participants expect price clarity once SECL’s auctions on 24 and 25 October are concluded.
Sponge iron falls w-o-w
BigMint’s C-DRI index (ex-Rourkela) fell INR 500/t w-o-w to INR 24,000/t, as limited post-holiday participation kept trading thin. Sellers refrained from major adjustments, waiting for demand to revive after the festive lull.
Outlook
With festive holidays now ending, activity is expected to gradually resume next week. Stable port inventories and steady freights suggest limited near-term volatility in South African coal offers for India.
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