- Imported coal demand remains weak despite firmer global offers
- Freights strengthen on stronger cargo activity, higher bunker costs
India’s coal market remained subdued during the week ended 17 July 2026, as weak industrial demand, ample domestic coal availability, and comfortable inventories continued to weigh on import buying. Consumers largely preferred requirement-based procurement, while uncertainty and widening bid-offer gaps kept trading activity limited. Although international prices and freight strengthened, domestic market sentiment remained cautious, with buyers relying on existing stocks and delaying fresh purchases.
Imported thermal coal prices remain mixed
Indian portside prices of Indonesian thermal coal remained mixed during the week as ample domestic coal availability and comfortable inventories continued to suppress import demand. 5,000 GAR coal declined INR 50/t to INR 10,500/t at Kandla and INR 10,400/t at Vizag, while 4,200 GAR fell INR 200/t to INR 8,700/t and INR 8,600/t, respectively. Meanwhile, 3,400 GAR increased INR 150/t to INR 7,000/t at Navlakhi due to limited lignite availability and stronger ceramic demand. Freight increased $2.5/t to $20/t, while Indonesia raised benchmark prices for most coal grades. However, the presence of 42 mnt of coal stocks at power plants continued to limit import buying.
South African thermal coal market subdued
South African thermal coal prices at Indian ports remained largely stable during the week despite firmer global offers, as weak buying interest continued to weigh on the market. RB2 (5,500 NAR) remained unchanged at INR 10,450/t ex-Paradip, while RB3 (4,800 NAR) increased INR 50/t to INR 8,900/t. At Vizag, RB2 edged up INR 50/t to INR 10,300/t, while RB3 declined INR 50/t to INR 8,800/t. Thermal coal inventories at major Indian ports fell 6.1% w-o-w to 14.15 mnt due to lower arrivals. Meanwhile, PDRI DAP-Durgapur declined INR 300/t to INR 22,800/t, reflecting weak sponge iron demand and limiting imported coal purchases.
Domestic thermal coal prices edge higher amid buyers’ shift from imports
Domestic thermal coal prices extended gains, with 4,500 GCV material rising INR 200/t w-o-w to INR 4,250/t and 5,000 GCV increasing INR 50/t to INR 5,550/t. Prices remained supported by stable demand and strong premiums achieved in the 10-11 July SECL auctions. However, today’s SECL auction witnessed moderate participation, with most successful bids near reserve prices. Sponge iron and cement producers continued shifting towards domestic coal from imported material.
US coal remains competitive alternative to pet coke
Industrial US North Appalachian (NAPP) coal traded at around $134/t CFR west coast India and $136/t CFR east coast India. Based on an assumed 6,900 kcal/kg NAR, its delivered energy cost worked out to $19.4-19.7/GCal, compared with $18.2-19.3/GCal for imported high-sulphur petcoke priced at $136.5-145/t CFR India. Despite petcoke’s higher calorific value, several cement producers preferred US NAPP coal due to its lower sulphur content, easier blending with domestic coal, and comparable delivered economics at prevailing executable prices.
Met coke market remains subdued
India’s met coke market remained subdued during the week as weak steel demand, comfortable inventories and uncertainty over the continuation of the anti-dumping duty (ADD) kept buying activity limited. BF-grade met coke prices in eastern India declined INR 100/t w-o-w to INR 35,150/t ex-Jajpur, while prices in western India remained stable at INR 34,000/t ex-Gandhidham. Foundry-grade coke remained unchanged at INR 36,400/t ex-Rajkot. Meanwhile, Indonesian-origin BF-grade metallurgical coke (65/63 CSR) prices edged down $1/t w-o-w to $318/t CFR India, as buyers deferred fresh import bookings while waiting for clarity on the continuation of the ADD.
Imported petcoke market remains subdued
Imported petcoke offers increased from $132-135/t CFR India in late June to $140-145/t CFR India by 17 July, although the assessed CFR India price stood at $136.5/t. Buying interest remained weak as cement producers relied on existing inventories and deferred fresh purchases despite stronger replacement costs. Firmer US Gulf Coast FOB prices at $78/st, up $3/st w-o-w, and freights of $62.85/t continued to support delivered prices. While petcoke retained an energy-cost advantage at lower prices, higher executable offers reduced its competitiveness, keeping import demand subdued.
Domestic petcoke prices declined
Domestic petcoke prices extended their decline in July as major refiners reduced prices amid easing global supply concerns and improved freight conditions. IOCL cut prices by INR 800-880/t, with Paradip at INR 14,430/t, Haldia at INR 14,550/t, Koyali at INR 15,420/t and Panipat at INR 16,680/t. Nayara Energy reduced prices by INR 1,680/t to INR 17,650/t, while CPCL lowered prices by INR 1,540/t to INR 17,760/t. BPCL announced the steepest correction, cutting Bina prices by up to INR 3,000/t and Kochi rail prices to INR 17,000/t.
Coal freights increase
India-bound coal freights increased during the week, supported by active Australian cargoes, stronger South East Asian demand, and higher bunker costs. Freights on the Hay Point (Australia)-Paradip Panamax route rose $1.6/t w-o-w to $20.9/t, while the RBCT (South Africa)-Paradip route increased $1.2/t to $19.3/t despite subdued South African coal demand. Meanwhile, the East Kalimantan (Indonesia)-Navlakhi Supramax route gained $2.4/t to $19.9/t, driven by fresh South East Asian enquiries and firmer Indonesia round voyages. Limited prompt vessel availability also supported freight levels across key routes.
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