India: Coal tar auctions in Apr'25 mark supply boost amid demand spike
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- SAIL's auctions offer over 19,000 t in Apr'25
- Supply crunch keeps auction prices elevated
India's crude coal tar market experienced an increase in demand in April 2025, largely driven by growing consumption in downstream industries such as graphite electrodes, carbon black, and pitch manufacturing.
In response to this surge and to address the resulting supply-demand imbalance, major steel producers such as Steel Authority of India Limited (SAIL), NMDC Steel Limited, and Rashtriya Ispat Nigam Limited (RINL) - significantly ramped up their auction volumes to maintain market stability and ensure continued industrial supply.
According to industry sources, demand for crude coal tar witnessed a notable increase in April 2025. Additionally, supply constraints led to a surge in auction prices during the month. This pricing trend reflects the growing gap between demand and availability in the market.
As per data maintained by BigMint, SAIL was the largest contributor, offering a total of around 19,439 tonnes (t) of crude coal tar from its Bhilai, Bokaro, Durgapur, and IISCO steel plants - marking a considerable increase over 16,175 t in March 2025. However, its Rourkela unit did not conduct any auctions in April.
NMDC Steel Limited followed, offering around 7,000 t in April compared to 2,500 t in March. Average auction prices ranged within INR 35,000-40,000/t, a significant rise from around INR 32,000/t in March, reflecting decent demand and competitive bidding. RINL added to the supply by auctioning roughly 4,200 t during the same period, compared to a lower 1,680 t in March.
These auction activities underscore the commitment of public sector steel producers to ensuring a steady supply of crude coal tar in the face of growing industrial requirements while also working to moderate price volatility caused by temporary supply constraints.
