- Domestic coal availability tightens amid dispatch disruptions
- South African prices surge on tighter cargo supply, higher freights
India’s coal market sentiment remained firm this week, supported by tighter domestic coal availability, stronger international benchmarks and higher replacement costs. South African and Indonesian coal prices strengthened, while domestic coal and washed coal also gained amid monsoon-related supply disruptions. Met coke prices rose on tighter supply and higher coking coal costs. However, high import prices and cautious industrial procurement kept buying largely requirement-based, limiting broader demand momentum.
Indonesian coal prices strengthen broadly
Indian portside Indonesian thermal coal prices rose during the week ended 28 August 2026, supported by tighter Indonesian availability, cargo diversion towards China, and improved buying interest. Premium 5,000 GAR coal increased INR 300/t w-o-w to INR 10,800/t at Kandla and INR 10,700/t at Vizag, while 4,200 GAR rose INR 150/t to INR 8,900/t and INR 8,800/t, respectively. Navlakhi 3,400 GAR increased INR 200/t to INR 7,150/t. Stronger Chinese procurement and reduced Indonesian spot availability supported prices, while domestic supply constraints and firmer sponge iron prices encouraged enquiries. Indonesian FOB benchmarks also increased by around $0.5-3/t, particularly for 4,200 GAR coal.
South African coal prices surge
South African thermal coal prices at Indian ports rose sharply as of 27 August, supported by tighter cargo availability, higher freight and stronger sponge iron prices. BigMint assessed RB2 (5,500 NAR) ex-Paradip at INR 12,500/t, up INR 700/t w-o-w, while ex-Vizag increased INR 800/t to INR 12,500/t. RB3 (4,800 NAR) ex-Paradip rose INR 750/t to INR 11,550/t, while ex-Vizag gained INR 800/t to INR 11,500/t. South African RB2 FOB values averaged around $94/t in August, up from $88/t in July, while freight was around $21/t. Despite firmer offers, Indian buyers resisted higher prices, keeping procurement largely requirement-based and limiting larger-volume bookings.
Domestic coal prices strengthen on auction premiums
Monsoon conditions continued to slow SECL dispatches and affect the consistency of preferred coal grades, while lower auction frequency across CIL subsidiaries restricted fresh availability. Recent SECL Coal Junction auctions showed strong bidding, with Jhilmili G8-sized ROM rising from a base price of INR 2,318/t to INR 4,128/t, while Amera G8 reached INR 4,618/t. Domestic 5,000 GCV coal ex-Bilaspur rose INR 550/t w-o-w to INR 7,400/t on 27 August, while 4,500 GCV coal increased INR 150/t to INR 5,450/t. Higher auction realisations continued to raise replacement costs for downstream users and supported domestic coal prices.
Washed coal prices rise on tight ROM supply
Washed coal prices increased sharply this week as tighter run-of-mine (ROM) coal availability and higher domestic coal replacement costs supported offers. BigMint assessed 38-39% FC (5,000 GCV) washed coal FOR Raipur at INR 7,600/t, up INR 550/t w-o-w. Monsoon-related disruptions continued to slow coal dispatches, making it difficult for washeries to secure consistent feedstock. Strong SECL auction realisations also increased replacement costs, while firmer sponge iron prices provided additional support. However, buying remained cautious, with consumers largely covering immediate requirements. Sellers maintained firm offers amid limited ROM availability, keeping washed coal prices supported despite subdued spot demand.
Met coke prices strengthen amid tight supply
India’s met coke market strengthened in the week ended 27 August, supported by tighter availability, higher imported coke and coking coal costs, and improving downstream demand. BF-grade met coke in eastern India rose INR 1,200/t w-o-w to INR 37,000/t ex-Jajpur, while western India remained stable at INR 33,800/t ex-Gandhidham. Indonesian BF-grade met coke (65/63 CSR) increased $22/t to $335/t CFR India as higher FOB offers, freight and stronger Chinese buying lifted replacement costs. Australian PHCC rose $16/t to $261/t FOB Australia. China’s second coke price hike of RMB 100-110/t was implemented, with expectations of a third hike supporting sentiment. India’s Durgapur pig iron prices rose INR 650/t to INR 39,200/t.
US thermal coal prices spike on tight stocks
US thermal coal prices in India’s west coast retail market rose sharply as prompt stocks fell and replacement costs increased. NAPP and ILB stocks at Kandla and Tuna declined 34% w-o-w to 97,590 t on 24 August, while weekly lifting reached 56,655 t. Retail offers rose from INR 14,700-15,500/t earlier in the week to around INR 17,100/t, where a 4,500 t transaction was reported on 26 August. This compared with INR 14,200-14,300/t for a 3,000 t purchase on 19 August. December-loading NAPP offers from the US were around $100/t FOB, while November cargoes into west coast India were indicated around $155/t CFR. However, around 0.69 mnt of US coal was due to arrive by September, which could ease prompt tightness.
Petcoke offers rise as buyers resist
India’s imported petcoke market strengthened further during the week, with US Gulf Coast prices and Indian replacement costs rising. By 26 August, 6.5% sulphur petcoke was around $86/t FOB, up $2.50/t w-o-w, while 4.5% sulphur material reached $90/t, up $1.50/t. CFR India indications rose to around $148.50/t, with physical offers heard at $149-160/t. Cement buyers remained cautious, with several producers staying out of the market as high prices encouraged fuel substitution. July cement-sector petcoke imports fell 82% y-o-y to 0.21 mnt, while January-July imports declined 59% to 2.66 mnt. Domestic coal and US NAPP remained key alternatives, although rising NAPP replacement costs narrowed its advantage.
India-bound coal freight shows mixed trends
India-bound coal freight markets showed mixed trends as of 27 August, with Atlantic routes gaining while Pacific routes weakened. Hay Point-Paradip Panamax freight fell $0.8/t w-o-w to $21.7/t amid limited fresh coal enquiries. RBCT-Paradip increased $0.6/t to $19.8/t as tighter Atlantic tonnage and fresh India-bound demand supported rates. East Kalimantan-Navlakhi Supramax freight declined $0.1/t to $20.7/t, while South Kalimantan-Navlakhi fell $0.3/t to $19.7/t on thin Indonesia-India fixing and ample prompt tonnage. The BDI nevertheless rose 10.1% w-o-w to 3,056, led by a 6.6% increase in the Panamax index. Supramax gained only 0.6% to 1,644, keeping the near-term outlook mixed across India-linked routes.
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