India’s coal market sentiments remained subdued this week, with weak demand across thermal and metallurgical segments. Portside prices of Indonesian and South African coal held steady amid limited trade activity and cautious buying, especially from sponge iron manufacturers. Domestic coal prices also remained flat, as sellers resisted price cuts despite weak inquiries. Met coke prices showed slight weakness in some regions, while pig iron price drops further curbed buying interest. Rising freight rates and falling power plant inventories indicate potential near-term restocking, but overall market activity remains muted. Hedging has gained traction as a strategy to navigate ongoing price volatility.
South African port trades slow on weak sponge demand
Portside trades of South African coal in India stayed muted this week due to limited demand from sponge iron producers. RB2 (5500 NAR) was assessed at INR 8,450/t at Gangavaram and Paradip, while RB3 (4800 NAR) held steady at INR 7,200/t. Few deals were noted – Vizag saw RB2 sold at INR 8,150/t and Dhamra witnessed RB3 at INR 7,250/t. Sponge iron prices fell by INR 450/t w-o-w, reducing coal demand. With decline in sponge prices and no pre-monsoon stocking yet for coal, portside activity remains subdued, and coal prices are expected to stay flat in the short term.
Portside prices of Indonesian coal stable; power plant stocks decline
Indian portside prices of Indonesian thermal coal remained stable this week amid muted trade and cautious buying. The 5000 GAR stood at INR 7,800/t at Kandla, 4200 GAR at INR 6,200/t (Kandla) and INR 6,100/t (Vizag), while 3400 GAR held at INR 4,900/t at Navlakhi. Inventories at ports edged up 0.3% w-o-w to 12.37 mnt, while stocks at power plants fell to 57.55 mnt, raising near-term restocking concerns. Globally, 5800 and 4200 GAR prices eased, but 3400 GAR rose slightly.
Domestic coal prices steady as demand weakens, sellers hold firm
Domestic coal prices in India remained unchanged w-o-w, with 4500 GCV and 5000 GCV coal assessed at INR 4,500/t and INR 4,950/t exw-Bilaspur, respectively. Demand was subdued, with no new buying interest reported. In recent SECL auctions, bid levels stayed close to base prices, reflecting a lack of urgency among buyers. Sellers, however, maintained firm offers, resisting any price cuts. Additionally, the decline in sponge iron prices has added pressure on coal demand. Despite weak market activity, sellers continue to prioritise price stability over volume sales in the current environment.
Met coke steady in India; pig iron price drop limits buying
Domestic met coke prices in India stayed largely unchanged w-o-w, though a slight weakness was seen in the eastern regions. In Jajpur, prices dipped by INR 100/t to INR 34,100/t, while Gandhidham rates held at INR 32,200/t. A deal for 7,500 t was heard at INR 34,000-34,500/t. The market remains under pressure as pig iron prices in Durgapur fell by INR 600/t. Despite a $4/t rise in Australian coking coal prices, domestic coke prices haven’t reacted yet. China’s bearish sentiment and muted demand are further weighing on outlook. Mild price improvement is possible, but steel price trends will determine the momentum.
US pet coke prices dip; Saudi offers steady, but demand weak
Imported US pet coke prices in India dropped by $4/t this week, with May-June offers now at $106-108/t CFR on both coasts. Saudi-origin pet coke prices also eased slightly by $1/t, now quoted at $114-120/t CFR. Despite firm support from Chinese demand, Indian buyers showed limited interest in Saudi cargoes due to the higher price range.
India’s coal freights rise on vessel shortage, fuel cost pressure
Coal freight rates to India rose this week due to tight vessel supply and increased demand, especially in the Panamax segment. Strong cargo movement from East Australia and Indonesia, combined with firm front-haul demand, pushed rates higher. Rising bunker fuel prices further added to voyage costs. Freight from South Africa to Paradip increased by $0.7/t to $13.2/t, while Indonesia to Paradip rose by $0.5/t to $13.8/t. Australia-India rates stayed stable at $14.6/t. Despite firm activity, thermal coal inventories at Indian ports rose only 0.3% w-o-w, reaching 12.37 mnt in week 16 of CY’25.
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