Weekly round-up: Coal market remains stable amid supply constraints, cautious buying

• Monsoon disruptions continue affecting domestic coal quality, availability
• Freights diverge as Australian demand rises, Indonesian activity slows

Coal market sentiment remained mixed in the week ended 07 August 2026, with supply-side constraints supporting domestic and imported coal offers while buyers remained cautious amid subdued industrial demand. Monsoon-related disruptions affected domestic coal availability and quality, while international markets received support from firmer export offers and selective Asian demand. However, comfortable inventories and requirement-based procurement continued to limit fresh import activity. Freight movements remained mixed, with stronger Australian demand contrasting with weak Indonesian enquiries.

Indonesian coal prices remain flat on subdued demand

Indian portside Indonesian thermal coal prices remained broadly stable during the week, as subdued industrial demand, comfortable domestic coal availability, and cautious buying limited fresh imports. Premium 5,000 GAR coal was assessed at INR 10,500/t at Kandla and INR 10,400/t at Vizag, while 4,200 GAR remained at INR 8,700/t and INR 8,600/t, respectively. 3,400 GAR held near INR 7,000/t at Navlakhi. Indonesia’s planned 600 mnt production target and higher 30% DMO supported the global market, while cautious production quota (RKAB) approvals could tighten export availability. Supramax freight to Navlakhi fell $2.9/t w-o-w to $19.5/t, improving import economics, but failed to revive buying. Indian power-plant stocks stood at 37.24 mnt as of 6 August, keeping procurement requirements limited.

South African coal prices edge higher

South African thermal coal prices at Indian ports increased further, supported by firmer international offers and higher replacement costs, although buying remained largely requirement-based. BigMint assessed RB2 (5,500 NAR) ex-Paradip at INR 11,150/t, up INR 150/t w-o-w, while RB3 rose INR 50/t to INR 9,200/t. At Vizag, RB2 increased INR 50/t to INR 10,700/t, while RB3 rose INR 150/t to INR 9,200/t. Port inventories declined 2.46% w-o-w to 13.86 mnt, as evacuations exceeded fresh arrivals. International suppliers maintained firm offers following sales to alternative Asian destinations, while Indian buyers remained cautious at higher levels. In the downstream market, PDRI DAP-Durgapur rose INR 650/t to INR 23,750/t, while PDRI ex-Raipur increased INR 100/t to INR 25,350/t, despite subdued overall demand.

Domestic coal prices strengthen on tight availability

Indian domestic non-coking coal prices strengthened further, supported by tight availability and expectations of firmer prices. BigMint assessed 4,500 GCV coal at INR 5,150/t, up INR 550/t w-o-w, while 5,000 GCV coal rose INR 250/t to INR 6,700/t. Market participants said traders were holding firmer price expectations amid constrained availability, while monsoon conditions continued to affect coal grades and supply consistency.

Washed coal prices firm on feedstock constraints

India’s washed coal market remained firm as tight availability of suitable ROM coal continued to constrain production. BigMint assessed 38% FC (5,000 GCV) washed coal at INR 6,800/t FOR Raipur as on 05 August 2026, up INR 50/t w-o-w. Market participants said coal grades were not coming through properly due to the monsoon, making it difficult for washeries to secure consistent-quality feedstock. Tight ROM coal availability and higher domestic coal replacement costs continued to support washed coal offers, while traders remained firm in anticipation of higher prices amid constrained supply.

Met coke prices remain broadly stable

India’s domestic metallurgical coke market remained broadly stable, with BF-grade coke in eastern India increasing INR 150/t to INR 35,300/t ex-Jajpur, while western India remained unchanged at INR 33,500/t ex-Gandhidham. Firm production costs, restricted spot availability and support from the anti-dumping duty (ADD) kept prices supported, although subdued steel demand and limited spot buying capped further gains. Imported Indonesian BF-grade met coke remained unchanged at $308/t CFR India, while weaker steel demand and softer Chinese coke sentiment continued to limit upside.

India’s petcoke buying remains cautious

India’s cement producers remained cautious on imported petcoke purchases during the monsoon, as offers stayed at $140-142/t CFR India and domestic coal remained readily available. One major producer had shifted to coal and was waiting for petcoke prices to fall towards $125/t CFR, while another had stayed out of the market. The subdued spot demand reflected fuel substitution rather than weaker industrial consumption. Meanwhile, BigMint vessel tracking showed around 846,000 t of US NAPP coal on the water for India, mainly for large cement producers, indicating continued medium-term import programmes. International petcoke prices remained firm, limiting sellers’ willingness to discount. Buyers therefore continued prioritising fuel economics over inventory building.

Indian petcoke prices show mixed trends

Nayara Energy raised its August petcoke price by INR 440/t m-o-m to INR 18,090/t, reflecting firmer international energy markets and elevated replacement costs. The increase followed a sharp correction in July, while domestic prices remained significantly above year-ago levels.

BPCL announced mixed revisions from 1 August. Bina road prices fell INR 500/t to INR 18,000/t, while rail prices remained unchanged at INR 18,000/t. At Kochi, the rail price increased INR 1,000/t to INR 18,000/t. Bina’s price remained 32% above August 2025, while Kochi was nearly 58% higher y-o-y. Bina merchant availability remained limited at 20,000-25,000 t/month, compared with 75,000-80,000 t/month at Kochi. Market participants attributed the contrasting revisions to refinery-specific availability and regional market conditions.

India-bound coal freight market turns mixed

India-bound coal freight rates showed mixed trends in the week, with Panamax rates strengthening on tighter prompt tonnage and steady Australian coal enquiries, while Supramax rates weakened amid subdued Indonesian cargo activity and ample vessel availability. Hay Point-Paradip Panamax freight increased $2.5/t w-o-w to $22.7/t, while RBCT-Paradip fell $0.6/t to $19.5/t. In the Supramax segment, East Kalimantan-Navlakhi freight declined $2.9/t to $19.5/t, while South Kalimantan-Navlakhi fell $3.3/t to $18.5/t. Stronger Australian cargo enquiries and typhoon-related disruptions supported Panamax owners’ rate expectations, whereas limited Indonesian enquiries kept Supramax freight under pressure. The BDI rose 14.4% w-o-w to 3,057, while the Panamax Index increased 11.5% to 2,275.