- Thermal coal inventory improves w-o-w
- Indonesian index prices show mixed trends
The Indian portside market for Indonesian thermal coal exhibited minimal movement on a w-o-w basis, with the overall sentiment remaining subdued. Market activity was limited as both buyers and sellers maintained a cautious approach amid uncertainties and evolving supply dynamics.
Thermal coal prices stable
As of 9 May 2025, thermal coal prices at major Indian ports held firm. The 5000 GAR grade remained unchanged at INR 7,800/t at Kandla. The 4200 GAR grade was stable at INR 6,200/t at Kandla and INR 6,100/t at Vizag.
However, the 3400 GAR grade saw a drop of INR 200/t to INR 4,600/t at Navlakhi. Adequate supplies from multiple origins kept price pressure intact, particularly on lower-grade coal.
A source informed: “Operations at Kandla and Mundra ports have slowed down. Cargoes are currently available at discounted prices. If berthing disruptions persist at key ports, domestic coal prices may trend upward.”
Portside inventories edge higher
Portside inventories of thermal coal in India witnessed a slight increase, indicating steady vessel discharge despite muted trade volumes. According to data from BigMint, inventories rose by 7% to 14.22 million tonnes (mnt) in week 18 of 2025, up from 13.29 mnt in the previous week. While imports continued to flow, the market remained quiet, suggesting a stockpiling strategy in response to uncertain demand projections.
Coal stocks at power plants improve
Coal stock levels at Indian power plants also registered an uptick during the same period. As of 7 May, total coal availability stood at 57.196 mnt, up from 56.69 mnt a week earlier. This volume is sufficient to meet approximately 19 days of consumption under normal operating conditions.
Despite the overall improvement, concerns remain about critically low inventories at select power plants. This includes 10 facilities reliant on domestic coal, six that operate on imported coal, and four using washery rejects, highlighting localised supply risks.
Global coal prices show diverging trends
Indonesian thermal coal prices showed a mixed performance in international markets, influenced by shifting demand across different coal grades. Prices for the high-calorific 5800 GAR coal dropped by $0.39/t to $79.92/t, while the 4200 GAR grade also declined by $0.19/t to $48.23/t, both reflecting softer demand for higher-grade coal.
Conversely, the 3400 GAR grade edged up by $0.12/t to $33.42/t, indicating relatively stronger interest in lower-grade coal.
Market outlook
The Indian thermal coal market is expected to stay stable, supported by steady inventories and softening global prices. Localised supply risks may cause minor fluctuations, but overall sentiment remains cautious with limited volatility.
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