- India’s thermal coal prices drop
- Chinese steel mills cut met coke prices again
The coal market in India seemed to be stuck this week, with slow demand and growing inventories. Indonesian and South African thermal coal prices fluctuated because of weak market conditions, which made buyers cautious. Oversupply at ports indicated that sellers are finding it hard to make sales. However, there is a slight chance for improvement if demand from power plants increases, which could help ease the pressure on the market. Meanwhile, although domestic met coke prices edged up, the market awaited further support from India’s steel prices, which are yet to witness a recovery.
India: South African thermal coal prices drop as portside inventories rise
India’s portside prices of South African thermal coal fell this week. RB2 (5500 NAR) prices decreased by INR 300/tonne (t) w-o-w to INR 8,950/t, while RB3 (4800 NAR) dropped by INR 350/t w-o-w to INR 7,300/t, both ex-Gangavaram. This price decline was driven by weak demand and falling sponge iron prices, alongside ample coal stocks at ports. Thermal coal inventories increased by 6% w-o-w to 13.93 mnt in week 1 of CY’25, BigMint data showed. South African export offers for RB2 decreased w-o-w to $85/t FOB, while RB3 remained steady w-o-w at $65/t FOB. Sponge iron prices softened, down INR 400/t w-o-w to INR 25,800/t.
India: Indonesian non-coking coal prices stable on tepid demand
Indonesian non-coking coal prices at Indian ports remained steady this week due to reduced industrial activity and sluggish market conditions. Prices of 3400 GAR coal at Navlakhi Port stood unchanged w-o-w at INR 4,700/t, while 4200 GAR prices at Kandla and Vizag remained stable at INR 5,900/t and INR 5,750/t, respectively. However, 5000 GAR at Kandla ranged around INR 7,800/t, with high-CV prices at Vizag falling by INR 50/t to INR 7,700/t. Port inventories increased by 6% w-o-w to 13.93 mnt, further dampening demand for fresh imports. Indonesian indexed prices also fell marginally, with 5800 GAR at $88.76/t, 4200 GAR at $49.67/t, and 3400 GAR at $30.43/t, all FOB.
India: Domestic thermal coal prices steady in subdued market
Domestic thermal coal prices in India remained unchanged this week. BigMint’s assessment recorded 4500 GCV coal at INR 4,800/t and 5000 GCV at INR 5,600/t, both exw-Bilaspur. Despite stable pricing, market sentiment was subdued, as traders struggled to secure sales.
India: Domestic met coke prices edge up, market awaits steel price recovery
Domestic met coke prices in India increased by INR 400-800/t this week. BigMint assessed the 25-90 mm BF grade at INR 32,800/t exw-Jajpur and INR 28,800/t exw-Gandhidham. Eastern India-based producers raised offers to INR 34,000-36,000/t last week due to quarterly import restrictions, but only partial hikes were sustained. Incoming imported cargoes and stagnant domestic steel prices suggest sharp price hikes are unlikely. Additionally, the market is looking forward to a rebound in domestic steel prices, which is expected to support met coke tags.
China: Steel mills announce 6th round of met coke price cut
Steelmakers in northern China, including Xingtai, Tangshan, Shijiazhuang, and Tianjin, cut met coke tags by RMB 50-55/t, starting 8 January, their sixth consecutive round of price reductions. This follows a brief period of stabilisation. In total, prices have fallen by RMB 300-330/t since October. Weak demand, falling steel prices, and eroded profits prompted slower purchases, pressuring coke prices downward.
India: Refineries increase pet coke prices for Jan’25
Reliance Industries Ltd (RIL) raised pet coke prices by INR 225/t m-o-m to INR 12,548/t in January. Following RIL, Chennai Petroleum Corporation Limited (CPCL) increased prices by INR 400/t m-o-m to INR 13,000/t ex-Chennai, while Bharat Petroleum Corporation Limited (BPCL) also hiked prices at Bina (rail: INR 12,873/t) and Kochi (rail: INR 10,321/t) refineries. Mangalore Refinery and Petrochemicals Limited (MRPL) raised prices by INR 150/t m-o-m to INR 9,980/t (road) and INR 9,680/t (rail). Nayara Energy also lifted prices by INR 225/t m-o-m to INR 12,952/t. Refineries cited market trends and logistical strategies as key factors driving the adjustments.
India: Coal freights decline amid vessel oversupply, weak demand
India’s coal freights fell this week due to an oversupply of vessels, especially from Southeast Asia, and weak coal transportation demand. Thermal coal stocks at Indian ports increased by 6% w-o-w to 13.93 mnt in week 1 of CY’25, BigMint data showed. Freights on the Australia-India route rose slightly by $0.40/t to $11.9/t. South Africa-India rates dropped by $0.1/t to $11.5/t, while Indonesia-India rates declined by $0.2/t to $10.8/t. Mixed trends in the Baltic indices reflected fluctuating vessel demand, with the Baltic Dry Index up 82 points w-o-w to 1,072 points on 6 January, but the Supramax Index fell by 56 points to 884 points.
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