- Subdued steel market pressures sponge iron tags
- Domestic coal prices remain unchanged w-o-w
BigMint’s assessment of portside South African thermal coal prices in India showed stability w-o-w. RB2 (5500 NAR) prices were at INR 8,450/tonne (t) exw-Gangavaram, while RB3 (4800 NAR) remained at INR 7,200/t. At Paradip, RB2 stood at INR 8,500-8,600/t exw, and RB3 held at INR 7,350/t. Exw-Vizag offers for RB2 were steady at INR 8,200-8,300/t.
Notably, portside South African thermal coal prices remained stable, though the market was subdued amid the decline in sponge iron tags.
South Africa- India coal freights remained stable w-o-w at $14.2/t from the Richards Bay Coal Terminal (RBCT) to Paradip. This stability was supported by steady cargo demand and limited vessel availability, which kept the market balanced amid a broader decline in Pacific freights.
Market updates
South African coal export offers hold firm: RB2 remained unchanged at $76/t FOB w-o-w, while RB3 increased slightly to $63/t FOB as of 11 April. Tighter supplies of RB3 resulted in a marginal hike in offers.
Domestic coal prices steady: Indian coal prices held steady, with 4500 GCV and 5000 GCV grades assessed at INR 4,500/t and INR 4,950/t exw-Bilaspur. Traders kept offers firm, stating that prices had already reached a bottom and there was stable buying interest for domestic material. No major movement was observed in the recent SECL auctions.
Sponge iron prices ease: Indian C-DRI prices dropped to INR 27,550/t exw-Rourkela, down INR 450/t w-o-w, tracking a downtrend in steel market sentiments, which led to limited trades earlier in the week.
Outlook
Portside South African thermal coal prices may remain range-bound. The US tariffs and a drop in Indian sponge prices may pressure bids.
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