India: Washed coal prices fall as domestic coal rates weaken

• Sponge iron prices decline by INR 1,000/t, weighing on buying interest
• 4,500 GCV coal prices fall INR 800/t w-o-w; 5,000 GCV declines INR 300/t

Indian washed coal prices declined in the week ended 14 October as falling domestic coal prices and weaker sponge iron demand weighed on buying interest. Buyers remained cautious as spot prices softened following high-premium purchases in previous e-auctions. Buyers who had booked domestic coal at SECL’s auction at elevated prices were reluctant to lift material amid declining market rates, while the upcoming SECL auction was expected to provide further clarity on domestic coal price trends.

Washed coal prices decline in Raipur

BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 9,550/t on 14 October 2026, down INR 550/t w-o-w. The decline reflected weaker buying interest amid falling domestic coal prices and subdued demand from downstream consumers.

Buyers remained cautious about purchasing at earlier price levels as raw material costs and market offers weakened. The fall in domestic coal prices also increased pressure on washed coal sellers, while lower sponge iron prices further dampened procurement sentiment.

Domestic coal prices drop sharply

Ex-Bilaspur 4,500 GCV coal prices fell INR 800/t w-o-w to INR 6,200/t as of 13 October, while 5,000 GCV coal declined INR 300/t to INR 8,700/t.

The market weakened as participants who had purchased coal in previous SECL auctions at high premiums faced lower spot prices. Some bidders were reportedly reluctant to lift their booked quantities and were defaulting on earnest money deposits (EMDs), as purchasing costs had become less competitive against prevailing market rates.

SECL offers over 1 mnt of non-coking coal

South Eastern Coalfields Ltd (SECL) has decided to sell 1.185 mnt of non-coking coal through a single-window mode-agnostic e-auction scheduled for 15 October 2026. The offer includes G6, G7, G9, G11 and G12 grades across multiple coal clusters.

In a corrigendum dated 13 October, SECL revised the quantity offered from Gevra OC from 1.004 mnt to 504,000 t, a reduction of 500,000 t. The revised offer is for G11-sized ROM coal (-100 mm), with a modulated price of INR 1,184/t and a floor price of INR 1,421/t.

The auction was expected to provide a clearer indication of buyer participation and price direction amid declining spot prices and reluctance among some previous bidders to lift material purchased at higher premiums.

CIL increases bid security from INR 150/t to INR 500/t

Coal India Ltd (CIL) has increased the bid security for participation in its e-auction scheme from INR 150/t to INR 500/t, effective for auctions held following the issuance of its notice dated 5 October 2026. The revised requirement applies to e-auctions conducted by CIL subsidiaries under the CIL E-Auction Scheme 2022.

Sponge iron prices weaken on subdued steel demand

Sponge iron prices at Raipur declined INR 1,050/t w-o-w to INR 28,150/t. The broader market remained under pressure from sluggish finished steel demand and falling finished steel prices, which weighed on downstream buying.

Although lower prices attracted some additional buying interest in eastern India, overall market sentiment remained weak. The decline in sponge iron prices added to the pressure on coal procurement, as buyers remained cautious amid falling input and finished product prices.

Market sentiment

Washed coal prices weakened alongside domestic coal and sponge iron markets. Lower spot prices reduced the incentive for participants to lift coal booked at high auction premiums, while the revised Gevra offering ahead of the 15 October SECL auction was expected to influence near-term buying interest and market direction.