India: Portside South African non-coking coal prices show mixed trends despite hike in import offers

• Bunker price rise pushes up landed cost
  
  
• Falling domestic coal prices limit demand
  
  

South African thermal coal prices at Indian ports showed mixed trends w-o-w on 30 April 2026, with a recent rise in offers following earlier declines. As per BigMint's assessment, ex-Paradip and ex-Vizag RB2 (5,500 NAR) increased by INR 100/t to around INR 11,000/t, while RB3 (4,800 NAR) remained under pressure, easing slightly to around INR 9,750/t. Despite the upward revision in offers, market acceptance remained limited due to weak demand fundamentals.

Cost push drives recent price increase

The recent increase in offers was mainly driven by higher global and logistical costs. A Panamax cargo was booked around $91/t FOB earlier, following which fresh offers increased to $95-96/t FOB for RB2 and around $77/t for RB3.

Rising bunker prices pushed freight rates higher to around $23/t for RBCT-Paradip routes, further increasing landed costs. Additionally, the Indian rupee crossing INR 95 per US dollar added to cost pressure, prompting traders to revise portside offers upward to INR 11,000-11,200/t levels for 5,500 NAR coal. Some offers were also heard around INR 11,500/t, though these levels saw resistance.

Weak demand limits buying interest

Despite higher offers, demand remained subdued. Sponge iron prices continued to weigh on coal consumption, with PDRI DAP-Durgapur declining by INR 500/t w-o-w to INR 26,650/t. Lower realisations in sponge and steel markets compressed margins, reducing appetite for imported coal.

Although buying activity improved slightly in some regions with better participation in downstream steel segments, procurement largely remained cautious and need-based. Market participants noted that even at ports, cargo movement for imported coal remained slow.

Domestic coal keeps pressure on imports

Domestic coal continued to exert strong competitive pressure. Prices declined sharply by up to INR 700/t w-o-w, with 5,000 GCV at INR 6,250/t and 4,500 GCV at INR 4,600/t exw Bilaspur following weak participation in the recent SECL auction.

Improved domestic availability and lower prices made imported coal less attractive, with buyers increasingly shifting towards domestic sourcing. This trend continued to cap demand for South African cargoes despite corrections in imported prices.

Deals indicate selective buying

Market activity reflected selective and price-sensitive buying:

• Around 5,000 t of RB2 were booked at INR 10,500/t exw Mangalore.
  
  
• A buyer purchased 10,000 t of RB3 at INR 9,400/t from Krishnapatnam.
  
  
• A southern India-based trader concluded a deal for around 5,000 t of RB3 at INR 9,800/t exw.
  
  
• Portside RB3 deals continued near INR 9,500-9,800/t levels.
  
  

These transactions indicate that buyers remained active only at lower prices, with resistance seen at higher offer ranges.

Inventories remain comfortable

India's non-coking coal inventories at major ports increased slightly by 2.1% w-o-w in Week 17 to 14.60 mnt, indicating continued supply availability. Adequate stocks, along with incoming cargoes, reduced urgency for fresh purchases and added to the cautious sentiment.

Outlook

While recent cost pressures have pushed South African offers higher, weak sponge iron demand and competitive domestic coal prices are likely to limit acceptance. Unless downstream demand improves, imported coal prices may face resistance despite rising freight and global cues. The market is expected to remain cautious, with buying driven largely by immediate requirements rather than aggressive stocking.