- Auction volumes drop sharply in Jun’25
- Muted demand offsets tight supply
India’s crude coal tar (CCT) market witnessed a significant contraction in supply during June 2025, even as auction prices reflected mixed trends across different producers.
Despite the limited availability, several state-run steel plants reported falling bid prices indicating muted demand or adequate inventory levels in the downstream segments, particularly from pitch and carbon black manufacturers.
Sharp decline in supply led by SAIL
According to BigMint data, Steel Authority of India Limited (SAIL), the leading crude coal tar supplier in May, saw a drastic reduction in offerings during June. Total CCT supply from SAIL dropped from 81,737 tonnes (t) in May to just 17,598 t in Jun’25.
This steep decline was primarily attributed to the absence of auctions from SAIL’s Rourkela Steel Plant (RSP), which typically contributes around 8,000-10,000 t per auction event. SAIL’s Bhilai, Bokaro, and Durgapur plants continued to conduct sales, albeit in much lower volumes.
Prices remain under pressure despite limited availability
Interestingly, despite the lower supply, auction prices showed a downward or stagnant trend across most SAIL subsidiaries. At SAIL-Bhilai, there was a marginal recovery in prices during the month with 788 t sold on 9 June at INR 36,500/t, compared to 1,795 t on 30 June at INR 37,180/t.
However, these rates remained below the average May levels, indicating sustained weak buying interest.
SAIL-Durgapur witnessed a more consistent fall in prices. Starting from INR 43,225/t on 2 May, prices slipped to INR 39,900/t on 15 May, further to INR 38,000/t on 30 May, and finally settled at INR 36,575/t on 5 June. This sustained decline points to ongoing weakness in demand from downstream users despite tighter supply.
Rashtriya Ispat Nigam Limited’s (RINL) followed a similar trend, with its June auction closing at INR 37,000/t down by INR 250/t from its previous event.
NMDC considers strategic shift amid quality concerns
The NMDC Steel Plant at Nagarnar did not hold any crude coal tar auctions during June. Sources suggest that the company is contemplating a shift in its marketing strategy moving away from the auction route towards long-term agreements or signing memorandums of understanding (MoUs) with coal tar derivative manufacturers to ensure consistent offtake.
Outlook
The crude coal tar market is likely to stay muted in the short term, with weak downstream demand offsetting the impact of tight supply. Ongoing shifts in marketing strategies, such as NMDC’s move towards long-term agreements, could reduce spot availability. A price recovery may only materialize if post-monsoon industrial demand shows meaningful improvement.
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