India: Portside South African coal prices decline amid weak demand

BigMint's assessment indicated that portside prices of South African thermal coal have fallen by INR 100-300/tonne (t) w-o-w. RB2 (5500 GAR) and RB3 (4800 GAR) coal prices were assessed at INR 9,450/t and INR 7,600/t ex-Gangavaram, respectively.

Trades remained subdued due to bid-offer disparities and weak steel demand. Non-coking or thermal coal stocks at Indian ports dropped by 4% w-o-w to 13.96 million tonnes (mnt) in week 35, compared to 14.55 mnt in week 34, according to data compiled by BigMint.

Deals heard:

• A deal for 20,000 t of RB2 was concluded at INR 9,500/t ex Mangalore.
  
  
• Two Panamax vessels of RB1 were booked at $102/t FOB Richards Bay for October laycan.
  
  

Market overview

• RB2, RB3 prices fall w-o-w: Prices of RB3 (4800 NAR) and RB2 (5500 NAR) coals have declined by $2/t w-o-w to $71/t FOB and $91/t FOB, respectively.
  
  
• Domestic coal prices inch up: Domestic coal prices have inched up this week. BigMint's assessment for 4500 GCV coal has risen by INR 100-200/t to INR 5,300/t exy Bilaspur. Meanwhile, prices of 5000 GCV coal have been assessed at INR 6,300/t. The hike is due to the seasonal monsoon factor, the absence of auctions in Korba, central India, and a noticeable uptick in market demand.
  
  
• Sponge iron prices fall w-o-w: Sponge iron (P-DRI) prices edged down by INR 150/t w-o-w to INR 24,700/t exw-Raipur on 6 September.
  
  

Outlook: The buying pattern remains subdued due to low demand, which may keep prices in check in the near term.