Thermal coal prices in India dipped slightly due to weak buying interest and improved domestic supply, leading to softer portside offers. Domestic met coke prices showed varied trends amid stable trade, while imported pet coke prices rose on strong Chinese demand, though market participants remain cautious about price stability. Coal freight rates increased due to high demand and limited vessel availability.
Indonesian non-coking coal prices stable at Indian ports
Indonesian non-coking coal prices at Indian ports held steady week-on-week, supported by a stronger dollar and rising freight costs, though demand remained subdued. At Kandla, 5000 GAR coal was flat at INR 7,650/t, while Vizag’s high-GCV 5000 GAR slipped by INR 50/t to INR 7,550/t. Navlakhi’s 3400 GAR dropped INR 150/t to INR 4,350/t, but 4200 GAR held at INR 5,850/t at Kandla and INR 5,750/t at Vizag.
Port inventories fell 9% to 12.58 mnt in week 7 of CY’25, reflecting slower dispatches. Globally, 5800 GAR dropped $0.36/t to $85.74/t FOB, while 4200 GAR rose $0.43/t to $49.13/t and 3400 GAR gained $0.76/t to $30.82/t.
India: Portside South African thermal coal prices dip
Portside South African thermal coal prices in India declined amid sluggish demand. RB2 (5500 NAR) dropped by INR 150/t to INR 8,500/t exw-Gangavaram, while RB3 (4800 NAR) fell by INR 50/t to INR 7,150/t. Improved domestic coal availability has shifted buyer preference towards local supplies, leading to softer portside offers and bids falling by INR 100-200/t. Sponge iron producers have also slowed purchases, planning reduced buying in the coming months.
In export markets, South Africa’s RB2 offers slipped $2/t w-o-w to $80/t FOB, while RB3 declined by $3/t to $59/t FOB.
Indian thermal coal prices ease by INR 50-100/t
Thermal coal prices in India saw a slight decline of INR 50-100/t. The price for 4500 GCV coal stood at INR 4,900/t, while 5000 GCV was priced at INR 5,900/t, both exw-Bilaspur. Market participants highlighted that bid prices in the recent SECL auction were lower, even with active participation. The price drop reflects cautious buyer sentiment despite steady demand in the market.
Domestic met coke price trends mixed w-o-w
India’s domestic met coke prices showed mixed trends this week despite steady trade. BigMint’s assessment recorded 25-90 mm BF-grade coke prices stable at INR 34,000/t exw-Jajpur, while Gandhidham prices dropped INR 800/t w-o-w to INR 31,200/t exw. Around 5,000 t were traded at INR 34,500-35,000/t exw-Jajpur.
Imported met coke bookings remained limited due to quantitative restrictions, with no supplies from Poland or Colombia. Meanwhile, China announced its ninth consecutive price cut since October, lowering met coke prices by RMB 450-495/t due to weak steel demand, high inventories, and falling coking coal prices, adding further market pressure.
Imported pet coke prices up $7-10/t
Imported pet coke prices in India increased by $7-10/t w-o-w, reaching $118-120/t CFR west coast and $121-122/t CFR east coast. The price rise is driven by strong Chinese demand, with most cargoes booked for China. Suppliers have raised offers, but no deals have been confirmed at these higher rates. Market participants remain cautious about the price sustainability due to US tariffs and ongoing supply constraints.
Coal freights rise w-o-w on strong demand, tight vessel availability
Coal freights in India increased week-on-week amid strong market sentiment, supported by healthy cargo demand in the Asia-Pacific, especially from Indonesia. Limited vessel availability for prompt loadings created a supply-demand imbalance, pushing rates higher. Rising freight derivatives during Asian trading hours further boosted bids. Although bunker prices stayed stable, falling thermal coal stocks at Indian ports down by 8.6% to 12.58 mnt in week 7 supported vessel demand.
Route-wise, Australia-India rates rose by $0.3/t to $13.5/dmt, with SAIL booking a Panamax at $14.8/t. South Africa-India freights also increased by $0.3/t to $11.5/t, while Indonesia-India rates jumped $1.2/t to $11.5/t amid active bookings.
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