Weekly coal report: Trends shaping Indian, global markets (week 04, 2025)

Coal markets displayed varied trends this week. Indonesian non-coking coal prices remained steady at Indian ports amid weak industrial demand and reduced global trade activity. South African thermal coal prices also stayed stable, impacted by low sponge iron production and buyers utilising existing inventories.

Domestic thermal coal prices saw minor dips as improved supply from auctions weighed on the market, with cautious buyers delaying procurement. Conversely, domestic met coke prices edged higher, although subdued buying persisted due to ample stockpiles and upcoming imports.

Imported pet coke prices reached record highs, driven by steady cement sector demand and strong supplier quotes. Meanwhile, coal freight rates declined due to excess ship availability and sluggish cargo movement, particularly in the Indonesian basin.

India: South African thermal coal import prices in India steady

India's portside prices for South African thermal coal remained stable this week due to low buying interest. RB2 (5500 NAR) stood at INR 8,800/t and RB3 (4800 NAR) at INR 7,300/t, both ex-Gangavaram.

Sponge iron producers are reducing or halting output, leading to weak demand. Many buyers opted for domestic coal or drew from existing inventories. Portside thermal coal stocks fell by 2.3% w-o-w to 13.89 mnt in week 3 CY'25.

South African RB2 export prices were steady at $82/t FOB, while RB3 slipped by $0.5/t to $61.5/t FOB. Domestic coal prices also dipped slightly, with cautious market sentiment persisting amid improved supply from SECL auctions.

India: Indonesian non-coking coal prices at Indian ports remain stable

Indonesian non-coking coal prices at Indian ports remained steady w-o-w due to subdued market activity. Portside prices for 3400 GAR coal at Navlakhi stood at INR 4,650/t, while 4200 GAR coal was unchanged at INR 5,850/t at Kandla and INR 5,750/t at Vizag. High-GCV coal held steady at INR 7,650/t at Vizag and INR 7,700/t at Kandla. Weaker demand, reduced industrial activity, and a downturn in China's domestic market during Lunar New Year slowed global trade. Non-coking coal inventories at Indian ports fell by 2% w-o-w to 13.89 mnt. Indonesian indexed coal prices declined slightly, with 5800 GAR at $86.48/t, 4200 GAR at $48.76/t, and 3400 GAR at $29.82/t on an FOB basis.

Domestic thermal coal prices decline slightly amid increased auction supply

India's domestic thermal coal prices saw a minor dip this week. The 4500 GCV grade was assessed at INR 4,750/t, and the 5000 GCV grade stood at INR 5,550/t, both down by INR 50/t w-o-w exw-Bilaspur. Market sentiment was cautious as buyers awaited outcomes from SECL's recent auction, which saw higher auction quantities available. This improved supply of key grades is expected to exert further downward pressure on prices. Buyers, anticipating additional price drops, delayed procurement, keeping demand muted in the short term.

Domestic met coke prices rise but demand subdued

India's domestic met coke prices increased slightly, with 25-90 mm BF-grade prices at INR 34,000/t exw-Jajpur and INR 31,500/t exw-Gandhidham, up INR 1,200/t and INR 1,000-1,500/t ($12-17) w-o-w. However, buying interest at higher prices remains low due to sufficient stockpiles and expected imports. A DGFT-led meeting allocated import authorisations to 23 companies, ensuring continuity in supply based on past import data.

Chinese steel mills accept 7th straight coke price cut

China's metallurgical coke market implemented its seventh price cut amid weak demand and ample supply. Major steelmakers reduced coke purchase prices by RMB 50-55/t,. Thin margins persist despite some profitability at coking plants. Sluggish steel demand and high stock levels further pressure prices ahead of Chinese New Year.

India: Imported pet coke prices reach record highs

This week, imported petroleum coke (pet coke) prices in India increased further. West coast prices rose by $2-3/t to $109-108/t CFR, while east coast prices climbed to $111-110/t CFR, compared to last week's levels of $107-108/t and $110-109/t, respectively. Saudi Arabian pet coke remains in demand due to quicker delivery, with prices supported by steady cement sector demand and firm supplier quotes.

Coal freights in India fall on low cargo demand

India's coal freight rates declined this week due to low cargo demand and excess ship availability, particularly in the Indonesian basin. Thermal coal inventories at Indian ports dropped 2.3% w-o-w to 13.89 mnt in week 03 CY'25. Baltic indices reflected weak demand, with the Baltic Dry Index at 987 points, down 61 points w-o-w. Freight rates fell marginally: Australia to Paradip dropped to $11.8/dmt, South Africa to Paradip to $10.8/t, and Indonesia to Paradip to $8.9/t.