- Domestic shortages support imports
- High prices keep buying need-based
South African thermal coal prices at Indian ports strengthened sharply as of 10 September 2026, supported by tighter supply, higher global energy costs and firm steel demand. RB2 (5,500 NAR) ex-Paradip rose INR 500/t w-o-w to INR 13,200/t, while RB3 increased INR 900/t to INR 11,600/t. Ex-Vizag, RB2 rose INR 500/t to INR 13,100/t, while RB3 increased INR 850/t to INR 11,500/t. Despite good enquiries, buyers remained cautious at elevated levels.
Global costs keep imported coal firm
Thermal coal prices remained strong across markets as higher oil and natural gas prices, along with supply disruptions, pushed up replacement costs. Offers also increased across Indian ports. At Ennore, RB2 was offered around INR 13,100/t and RB3 around INR 11,800/t, while Krishnapatnam offers were around INR 13,200/t for RB2 and INR 11,700/t for RB3.
However, no deals were reported at these current offer levels. At Paradip, RB2 offers reached around INR 13,500/t, but buyers showed no interest at that level.
As per BigMint assessment, CNF Gangavaram RB2 (5,500 NAR) averaged $107/t in July, rising to $114/t in August and sharply higher to $126/t in September, reflecting a significant increase in import replacement costs.
India’s imports from South Africa fall sharply in August
India’s non-coking coal imports from South Africa declined sharply to 1.1 mnt in August from 1.9 mnt in July, indicating lower availability of South African cargoes in the Indian market. The 42% m-o-m decline came as higher replacement costs and firm global prices weighed on fresh procurement. Lower import volumes, alongside continued domestic coal supply constraints, supported tighter availability and firmer South African coal prices in the Indian market. Prices remained firm despite weaker Indian demand, as consistent demand from other destinations continued to support prices and limit downside pressure on South African cargoes.
Domestic shortages support import enquiries
Domestic coal availability remained tight, supporting enquiries for imported thermal coal. Domestic 5,000 GCV coal increased INR 100/t w-o-w to INR 8,000/t, while 4,500 GCV rose INR 100/t to INR 5,900/t. Higher domestic coal costs and continued supply constraints encouraged consumers to consider imported material.
Steel demand also provided support to the coal market, particularly through firm sponge iron prices. PDRI ex-Raipur increased INR 250/t w-o-w to INR 29,300/t, while DAP-Durgapur rose INR 250/t to INR 29,050/t.
Buyers remains cautious at high price levels
Although enquiries for imported coal remained good, actual buying continued to be largely requirement-based. Small transactions were reported as buyers covered immediate requirements, while some consumers continued using domestic coal where available.
The sharp increase in South African coal prices had widened the gap between seller offers and buyer acceptance. Market sentiment therefore remained firm, but high prices prevented broader fresh bookings. If supply disruptions and elevated energy costs persisted, prices could remain supported, although buyer resistance was likely to increase at current levels.
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