Weekly recap: Global coal market trends (Week 52, 2024)
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India's coal market remained sluggish this week weighed down by high inventories, subdued demand and market slowdown ahead of the holiday season. Indonesian portside thermal coal prices held steady amid cautious buying, while South African coal prices weakened amid ample domestic supplies following CIL auctions. Domestic coal prices also dipped, reflecting muted demand from sponge iron producers. In met coke, tightened import restrictions and higher domestic offers signalled market strength. Meanwhile, pet coke prices stayed stable, with minimal trading activity reported.
Indian thermal coal portside prices remain steady
Indonesian thermal coal prices at Indian ports stayed unchanged week-on-week (w-o-w), reflecting lacklustre demand. Domestic stockpiles remain high, buyers are delaying deals, and the upcoming holidays are further slowing down the market. Key coal grades at Indian ports showed stable pricing, with 3400 GAR at Navlakhi at INR 4,700/t, 4200 GAR at INR 5,900/t (Kandla), INR 5,750/t (Vizag), and 5000 GAR at INR 7,900/t (Kandla) and INR 7,800/t (Vizag). Thermal coal inventories at ports edged up by 0.5% to 13.35 million tonnes (mnt) during week 51. Global supply disruptions caused by adverse weather and approval delays continue to influence sentiment, although Indonesia's high-CV coal prices dipped to $90.75/t (FOB). Ample supplies and price sensitivity dominate the bearish Indian market.
South African imported thermal coal prices fall further
South Africa's imported thermal coal portside prices declined this week amid higher port inventories and subdued buying ahead of the holidays. RB2 (5500 NAR) prices dropped by INR 100/t to INR 9,250/t, while RB3 (4800 NAR) prices fell by INR 50/t to INR 7,750/t ex-Gangavaram. Frequent auctions by Coal India Limited subsidiaries also contributed to market oversupply.
Thermal coal stocks at Indian ports rose slightly by 0.5% to 13.35 mnt in week 51. FOB prices for RB2 fell by $2/t to $86/t, and RB3 eased by $2/t to $66/t, reflecting subdued demand.
Domestic coal prices fall after CIL auctions
Domestic coal prices in India fell further this week. BigMint's assessment shows 4500 GCV coal dropped by INR 100/t to INR 4,800/t, while 5000 GCV coal declined by INR 400/t to INR 5,600/t exw-Bilaspur. Sentiments remained cautious due to the drop in bids in CIL auctions and also declining sponge iron prices.
India sets quarterly met coke import limits for H1CY'25
The Indian government has introduced quantitative restrictions on low-ash met coke imports for January-March and July-September 2025, capping each quarter at 713,583 t. High-ash met coke has been excluded to protect domestic producers. Imports are restricted to EDI ports for monitoring, and unused quotas will carry forward.
Indian met coke producers lift offers
Indian players have raised BF met coke offers by INR 500-1,000/t w-o-w to INR 32,000-33,000/t exw Jajpur. Indonesian plants are offering at $250-255/t FOB, while China prices are at $265-270/t FOB.
Chinese steel mills press for 5th straight met coke price cut as inventories grow
Northern Chinese steelmakers initiated the fifth consecutive round of met coke price reductions, effective 27 December, following stable rates since mid-September. Mills in Tangshan, Xingtai, and Tianjin cut prices of wet and dry quenching coke by RMB 50-55/t due to high stocks and reduced consumption amid blast furnace maintenance. Steel product sales were sluggish despite slight price increases, further dampening demand for met coke. Growing inventory pressure at coking plants and bearish market sentiment continued to challenge producers, particularly in western and central China, as overall liquidity in the steel market was limited.
