- Reduced sponge tags, sufficient port stocks hit prices
- Thermal coal stocks at Indian ports increase by 6%
India’s portside prices of South African thermal coal dropped this week, reflecting reduced sponge iron prices and sufficient port inventories. RB2 (5500 NAR) prices slipped to INR 8,950/tonne (t), down by INR 300/t w-o-w (w-o-w), while RB3 (4800 NAR) prices fell to INR 7,300/t, a decrease of INR 350/t w-o-w, both ex-Gangavaram. Weak buying interest amid fallen sponge prices and abundant domestic supplies contributed to the lower price trend.
Thermal coal inventories at Indian ports increased by 6% to 13.93 million tonnes (mnt) in week 1 of CY’25 from 13.13 mnt in week 52 of CY’24, according to BigMint’s data.
Market overview
South Africa’s export prices edge lower: South Africa’s RB2 (5500 NAR) export offers decreased marginally by $0.50/t w-o-w (w-o-w) to $85/t FOB, while RB3 (4800 NAR) offers remained steady at $65/t FOB.
Domestic coal stable: Domestic coal prices in India held steady this week. BigMint’s assessment showed 4500 GCV unchanged at INR 4,800/t, while 5000 GCV remained stable at INR 5,600/t, both exw-Bilaspur. Market sentiment was cautious, with traders facing difficulties in making sales.
Sponge iron prices soften: Sponge C-DRI prices were assessed at INR 25,800/t exw-Rourkela, down INR 400/t w-o-w.
Outlook
RB3 stocks at specific ports remain constrained. Sellers anticipate improved demand towards late January, although price resistance from sponge players may continue to limit recovery.
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