India: Portside South African coal prices decline amid rains, global market pressures

BigMint's assessment indicated that portside prices of South African thermal coal remained under pressure, dropping by INR 50-200/t this week. RB2 (5500 GAR) and RB3 (4800 GAR) prices were assessed at INR 9,400/t and INR 7,600/t ex-Gangavaram, respectively.

Current weak steel demand has kept buying subdued. Also, rainfall in parts of the country has reduced procurement demand along with transportation hindrances. Bigmint learned from market participants that port-side issues due to rains delayed delivery of material to plants. Non-coking or thermal coal stocks at Indian ports dropped by 4.19% w-o-w to 13.37 million tonnes (mnt) in week 36 of CY'24 from 13.96 mnt in week 35, as per data compiled by BigMint.

Deals heard:

• A deal for 75,000 t of RB2 was heard concluded at $83-84/t, FoB RBCT.
  
  
• A deal for 5000t of RB2 was heard at INR 9,100/t ex-Ennore Port.
  
  

Market overview

• RB2, RB3 prices fall w-o-w: Prices of RB3 (4800 NAR) declined w-o-w by $1/t w-o-w to $70/t FOB. The RB2 (5500 NAR) grade fell to $89/t FOB, down $2/t.
  
  
• Domestic coal prices unchanged w-o-w: Domestic coal prices were stable this week. BigMint's assessment for 4500 GCV coal was at INR 5,300/t exy Bilaspur. Meanwhile, prices of 5000 GCV have been assessed at INR 6,300/t.
  
  
• Sponge iron prices edge up w-o-w: Sponge iron (P-DRI) prices edged up w-o-w to INR 24,750/t exw-Raipur on 13 September.
  
  

Outlook: South African thermal coal prices at Indian ports held steady, but weak steel demand and rain-related transport disruptions have slowed procurement. With such challenges, the market outlook appears subdued, and a near-term price recovery is unlikely due to persistently soft demand.