- Heavy rainfall disrupts availability of quality ROM coal
- Aggressive e-auction premiums lift replacement costs
India’s washed coal prices strengthened further on 5 August 2026, supported by tight availability of quality ROM coal, monsoon-related mining disruptions, and higher replacement costs. BigMint assessed 38% FC (5,000 GCV) washed coal at INR 6,800/t FOR Raipur, up INR 50/t from the previous assessment. Market participants said persistent rainfall continued affecting both the quality and availability of ROM coal, making it difficult for washeries to secure consistent feedstock and maintain normal production. Higher logistics, electricity, and plant maintenance costs also continued supporting firmer washed coal offers.
The firmness in washed coal prices followed the sharp increase in domestic non-coking coal prices assessed on 4 August. BigMint assessed 5,000 GCV coal at INR 6,500/t exw Bilaspur, up INR 800/t, while 4,500 GCV coal increased by INR 700/t to INR 5,000/t. Aggressive bidding in recent SECL spot e-auctions, coupled with lower monsoon dispatches and constrained availability from preferred mines, continued lifting replacement costs for washeries and limiting the availability of quality ROM coal.
The higher raw material costs were also reflected in the downstream sponge iron market. As on 5 August, PDRI DAP-Durgapur increased by INR 300/t to INR 23,850/t, supported by higher input costs. However, market participants said buying activity remained largely requirement-based, with weak downstream steel demand continuing to restrict bulk procurement despite the rise in sponge iron prices.
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