- Geopolitical tensions disrupt petcoke, increase freight volatility
- Imported coal markets firm but trading activity remains limited
Coal markets remained firm in the week ending 13 March as geopolitical tensions, rising freight costs and tight portside availability supported sentiment. However, buying activity stayed cautious with many consumers adopting a wait-and-watch approach amid volatile global energy markets. Domestic coal demand remained steady, while imported coal markets saw limited transactions as buyers resisted elevated offers and relied on existing inventories.
Indonesian coal prices firm
Indian portside Indonesian thermal coal prices up amid seller caution and geopolitical uncertainty. As per BigMint, 5,000 GAR rose by INR 100/t w-o-w to INR 9,400/t at Kandla and INR 9,300/t at Vizag, while 4,200 GAR increased by INR 200/t to INR 7,700/t and INR 7,600/t respectively. Lower-grade 3,400 GAR up by INR 200/t w-o-w to INR 5,850/t at Navlakhi. Portside inventories increased 1.6% w-o-w to 13.35 mnt. Indonesian benchmark prices also rose, while Supramax freight from East Kalimantan to Navlakhi climbed by $6/t to $23/t, lifting landed costs.
South African coal prices rise further
South African thermal coal prices at Indian ports increased w-o-w amid tight availability and higher freight. As per BigMint’s assessment, exw-Paradip RB2 (5,500 NAR) rose by INR 500/t to INR 12,200/t and RB3 (4,800 NAR) by INR 200/t to INR 10,600/t. Freight from Richards Bay to Paradip increased by $5.8/t w-o-w to $24/t, with levels heard around $22-25/t amid geopolitical tensions and higher oil prices. Buying remained limited as consumers held stocks until April and adopted a wait-and-watch approach. Offers for March-arrival cargoes at Mangalore were heard near INR 11,700/t for 5,500 NAR. Meanwhile, sponge iron P-DRI DAP Durgapur increased by INR 550/t w-o-w to INR 26,300/t, while domestic coal prices remained stable.
Domestic coal prices rise w-o-w
Domestic non-coking coal prices increased by INR 150-250/t w-o-w, as per BigMint’s assessment. 4,500 GCV rose to INR 5,150/t and 5,000 GCV increased to INR 6,250/t exw Bilaspur. The rise was supported by active participation in the recent SECL auction and firm bids for higher grades. Additionally, SECL announced another auction offering 1,269,500 t of non-coking coal on 19 Mar’26 covering grades G6-G10, G12 and G13.
Coking coal index rises on freight surge
BigMint’s PHCC index rose by $9/t w-o-w to $249/t CNF Paradip on 13 March, supported by higher vessel freights. Panamax freights from Haypoint to Paradip increased by over $4/t to $26.4/t. However, trade activity remained muted as buyers delayed bookings expecting lower prices, while Australian offers stayed largely range-bound during the week.
Indian met coke prices mixed
Indian BF-grade metallurgical coke prices showed mixed trends w-o-w amid weak demand and softer coking coal prices. In eastern India, prices fell by INR 600/t to INR 35,000/t ex-Jajpur, while western India remained stable at INR 31,000/t ex-Gandhidham. Foundry coke held at INR 36,000/t ex-Rajkot. Meanwhile, Indonesian BF coke offers increased by $11/t w-o-w to $285-290/t CFR India, although Chinese coke price cuts of RMB 50-55/t and weaker pig iron prices at INR 37,700/t ex-Durgapur weighed on sentiment.
Global petcoke prices surge
Global petcoke prices increased sharply amid Middle East supply disruptions and rising freight costs, while demand weakened. US Gulf high-sulphur petcoke traded at $98-105/t FOB, with lower sulphur grades near $107-110/t. Delivered prices in India rose to $150-155/t CNF from $125-130/t earlier, with some offers higher. Freight from the US Gulf to India increased to about $51-55/t. Supply disruptions in the Gulf tightened availability, pushing buyers toward US cargoes. However, cement producers in India reduced purchases and shifted partly to US NAPP coal and domestic coal blends. Weak buying interest across India, China and Turkiye kept trading activity limited despite rising offers.
Indian refiners raise petcoke prices
Indian refiners increased petcoke prices for March amid tight domestic supply and rising import offers. IOCL implemented the steepest hike of INR 1,210/t across all refineries, while Nayara raised prices by INR 670/t to INR 16,040/t and MRPL increased by INR 730/t. BPCL revised prices modestly. Imported US petcoke offers rose by $20-25/t w-o-w to $150-155/t CNF India, while Saudi offers remained absent amid Middle East tensions. RIL continued full captive consumption, keeping merchant supply tight. MRPL rake prices were revised to INR 12,910/t and road to INR 14,640/t, while BPCL Bina and Kochi rose to INR 15,775/t and INR 13,764/t respectively. Tight availability supported firm domestic sentiment.
Coal freight rates extend gains
Dry bulk coal freight rates to India increased w-o-w across key routes despite limited vessel fixing activity. BigMint assessed Panamax freight Haypoint-Paradip at $26.4/t, up by over $4/t w-o-w. Supramax freight East Kalimantan-Navlakhi rose by $6/t to $23/t, while Richards Bay-Paradip increased by about $5/t w-o-w. Firm vessel sentiment, limited prompt tonnage and higher bunker prices supported the rise. VLSFO hovered around $1,204/t, while Brent crude increased by $9.94/bbl w-o-w to $98.98/bbl, adding further cost pressure on voyage economics.
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