- Prices rose on tighter supply, lower stocks and higher freight
- Washed coal, met coke, petcoke and NAPP gained on higher input costs
India’s coal and industrial fuel markets strengthened broadly during the week, supported by tightening supply, higher replacement costs, declining inventories and firmer international freight. Indonesian and South African thermal coal prices rose, while washed coal, met coke, petcoke and NAPP coal also gained amid supply constraints and stronger input costs. However, cautious buying and expected arrivals of US coal could limit further price escalation in the near term.
Tight Indonesian supply drives sharp gains in portside thermal coal prices
Indian portside prices of Indonesian thermal coal surged in the week ending 4 September 2026, driven by tightening Indonesian supply, limited prompt cargo availability and renewed Chinese buying. Supply constraints stemming from RKAB-related production restrictions, exhausted mining quotas, low river water levels and disruptions to barge movements reduced cargo availability, particularly for mid- and higher-CV grades. Consequently, 5,000 GAR prices rose by INR 800/t w-o-w to around INR 11,600/t at Kandla and INR 11,500/t at Vizag, while 4,200 GAR increased by INR 700/t and 3,400 GAR at Navlakhi gained INR 600/t. Meanwhile, declining coal inventories at Indian ports and thermal power plants could further support import demand once monsoon-related disruptions ease.
South African thermal coal prices rise further as port stocks decline
South African thermal coal prices at Indian ports strengthened during the week, supported by higher international energy costs, rising FOB values and tighter replacement economics. RB2 (5,500 NAR) increased to INR 13,000/t ex-Paradip and INR 12,900/t ex-Vizag, while RB3 (4,800 NAR) rose to INR 10,900-11,000/t respectively. Domestic coal prices also gained amid monsoon-related dispatch constraints and tighter spot availability, with higher CIL e-auction premiums further supporting market sentiment. Firm sponge iron prices added to demand; however, buyers remained cautious about fresh imports as elevated replacement costs limited acceptance at higher price levels.
Rising ROM prices lift washed coal market
Indian washed coal prices continued to strengthen in the assessment week ended 2 September 2026 as rising ROM costs and constrained production tightened availability. BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 8,100/t on 2 September 2026, up INR 500/t w-o-w. Washeries remained reluctant to accept fresh orders as slower production limited their ability to meet demand. Rising ROM costs further lifted replacement costs and supported higher offers, despite cautious downstream buying.
Surging coking coal prices push met coke to multi-year highs
India’s metallurgical coke market strengthened sharply, driven by surging coking coal costs, higher Indonesian FOB offers, elevated freight rates and stronger Chinese demand. Indonesian BF-grade met coke (65/63 CSR) rose $22/t w-o-w to around $357/t CFR India, while limited offers and water-related disruptions further tightened availability. Domestic met coke prices also surged to multi-year highs, with BF-grade coke in eastern India rising INR 3,000/t w-o-w to INR 40,000/t ex-Jajpur and western India increasing to INR 35,000/t ex-Gandhidham. Meanwhile, tight coking coal supply and rising raw material costs in China sustained bullish sentiment, with major producers initiating further price hikes, indicating continued upward pressure on met coke prices.
Tightening global market lifts petcoke replacement costs
India’s industrial fuel market is tightening as imported petcoke, domestic refinery petcoke and alternative high-CV fuels become more expensive. Rising US petcoke prices, elevated freight and stronger demand from China and Turkey have pushed Indian delivered prices higher, while Nayara and MRPL also increased domestic petcoke offers amid limited availability.
Meanwhile, resilient cement production and the expected recovery in construction activity are supporting fuel demand, even as cement prices remain relatively stable. With domestic petcoke production meeting only around 71% of consumption, rising replacement costs are narrowing the fuel-switching advantage for cement producers and increasing pressure on margins.
Falling NAPP inventories drive sharp rise in retail prices
NAPP coal prices in India rose sharply as higher US FOB values and freight costs coincided with a significant squeeze in prompt retail availability. Retail prices increased to INR 16,100-16,200/t by 1 September, with seller offers reaching INR 17,100-17,500/t, while stocks at Kandla and Tuna fell nearly 75,000 t to just 72,813 t between 17 and 31 August. However, a sizeable pipeline of US coal cargoes is expected to arrive in India during September-October, which could ease the immediate supply tightness, leaving the market dependent on whether inventory replenishment keeps pace with recovering post-monsoon demand.
India-bound coal freight firms across key routes
India-bound coal freight markets firmed across key routes as of 4 September, with both Atlantic and Pacific routes gaining. Hay Point-Paradip Panamax freight rose $1.5/t w-o-w to $23.2/t, supported by firm Pacific sentiment, robust Australian coal demand and tight prompt tonnage. RBCT-Paradip increased $0.6/t to $20.4/t, hitting a more than one-week high amid improving coal enquiries and tighter prompt tonnage supporting India-bound business.
East Kalimantan-Navlakhi Supramax freight climbed $1.2/t to $21.9/t, while South Kalimantan-Navlakhi also gained $1.2/t to $20.9/t, with firm West Coast India demand keeping the routes supported despite limited fresh cargoes and resistance to lower charterer ideas. The BDI rose 25.6% w-o-w to 3,488, reaching its highest level since October 2021. Panamax gained 9.4% to 2,457, while Supramax edged up 1.5% to 1,668, indicating firmer sentiment across the key vessel segments and a stronger near-term outlook for India-linked coal freight.
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