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India: Portside South African thermal coal prices stable w-o-w

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6 Dec 2024, 19:01 IST
India: Portside South African thermal coal prices stable w-o-w

  • Stocks at Indian ports rise for 2nd straight week

  • Sponge iron prices increase by INR 550/t w-o-w

Portside prices of South African thermal coal remained stable w-o-w, with RB2 (5500 NAR) at INR 9,500/tonne (t), according to BigMint's latest assessment. Meanwhile, RB3 (4800 NAR) increased by INR 200/t w-o-w to INR 7,800/t ex-Gangavaram due to a hike in offers from suppliers and trading houses.

Thermal coal stocks at Indian ports increased by 3% to 12.74 million tonnes (mnt) in week 48 from 12.36 mnt in week 47, according to BigMint's data. Inventories increased for the second week in a row.

Market overview

  • RB3 prices hold steady w-o-w: South Africa's indexed RB3 (4800 NAR) offers remained stable w-o-w at $69.5/t FOB. RB2 (5500 NAR) prices were unchanged w-o-w at $88.5/t FOB.

  • Domestic coal prices fall w-o-w: India's domestic coal prices declined this week amid muted market activity. As per BigMint's assessment, 4500 GCV was at INR 5,000/t, down by INR 500/t w-o-w, and 5000 GCV was at INR 6,450/t, down by INR 350/t w-o-w, both exw-Bilaspur. Lower bids at recent domestic coal auctions resulted in a drop in prices. This decline follows the steady pricing observed last week.

  • Sponge iron tags pick up: Sponge iron (P-DRI) prices picked up by INR 550/t w-o-w to INR 25,000/t exw-Raipur on 6 December.

Outlook

Indian thermal coal prices may remain largely range-bound amid reduced demand and rising port inventories. While RB2 will likely remain the preferred grade for buyers, RB3 may face limited demand unless prices are adjusted further downward.

6 Dec 2024, 19:01 IST

 

 

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