India: South African portside thermal coal prices remain stable w-o-w amid dull demand

• Domestic coal prices remain stable w-o-w
  
  
• Indian sponge iron prices hold firm w-o-w
  
  

India's portside prices of South African thermal coal held steady this week due to persistent weak demand and ample stocks at ports. RB2 (5500 NAR) prices remained at INR 9,250/tonne (t), while RB3 (4800 NAR) prices edged down by INR 100/t w-o-w to INR 7,650/t, both ex-Gangavaram.

The holiday season, combined with adequate domestic supplies, kept demand subdued.

Thermal coal inventories at Indian ports declined slightly by 1.7% to 13.13 million tonnes (mnt) in week 52 from 13.35 mnt in week 51, according to BigMint's data.

Market overview

South Africa's export prices inch down: South Africa's RB2 (5500 NAR) export offers dropped by $0.50/t w-o-w to $85.50/t FOB. RB3 (4800 NAR) offers also softened by $1/t w-o-w to $65/t FOB.

Domestic coal stable: Domestic coal prices in India held steady this week. BigMint's assessment shows 0-250 mm, 4500 GCV coal prices unchanged w-o-w at INR 4,800/t, while 0-250 mm, 5000 GCV coal prices remained steady w-o-w at INR 5,600/t, both exw-Bilaspur.

Sponge iron holds firm: Sponge C-DRI prices were assessed at INR 26,200/t exw-Rourkela, stable w-o-w. Prices remained largely range-bound amid limited trade activities during the holidays.

Outlook

RB3 stocks remain limited at certain ports, leading sellers to hope for a recovery in demand towards the end of January. However, price support and acceptance from sponge players remain in question.