India: Portside South African thermal coal prices soften w-o-w amid weak demand

• Imported coal prices under pressure on weak demand
  
  
• Buyers continue preferring domestic coal despite stable sponge market
  
  

South African thermal coal prices at Indian ports declined further w-o-w on 9 April 2026, weighed by muted sponge iron demand, low buyer enquiries, and continued pressure in the seaborne market. As per BigMint's assessment, exw-Paradip RB2 (5,500 NAR) dropped by INR 200/t w-o-w to INR 11,200/t, while RB3 (4,800 NAR) declined by INR 50/t to INR 10,200/t.

At Vizag, RB2 fell by INR 250/t to INR 11,100/t, while RB3 remained stable at INR 10,100/t. A deal for around 16,000 t of RB2 was concluded at INR 11,400/t exw-Vizag, indicating continued negotiations below offer levels.

Weak sponge enquiries limit buying interest

Market participants noted that buying interest from sponge iron manufacturers remained subdued despite a rise in sponge prices. Buyers largely stayed on the sidelines due to uncertainty in finished steel and billet demand, keeping procurement strictly requirement-based.

Although PDRI DAP-Durgapur increased by INR 500/t w-o-w to INR 28,200/t, market sentiment remained cautious after the recent US-Iran ceasefire announcement, which softened broader commodity sentiment and reduced panic buying.

Seaborne offers, freight correct sharply

Seaborne South African coal offers weakened notably during the week amid continued lack of buying support. FOB RBCT offers for 5,500 NAR declined to around $92-93/t, down from $97/t heard last week, while 4,800 NAR offers dropped to $75/t. Some market participants indicated 5,500 NAR FOB was heard even lower at $91/t, showing continued downward momentum.

Perhaps, RBCT coal inventories have dropped to critical levels, tightening export availability for Atlantic and Asian buyers. As of April 6, stocks stood at 3.4 mtdown 5% w-o-w and 17.6% y-o-y and 620,000 t (15.5%) below the 16-year April average of 4 mt.

Recent trades indicate a correction in export pricing, with a late-April Panamax 4,800 NAR cargo booked by an Indian buyer at $72/t FOB, while a 5,500 NAR parcel from Glencore was heard sold near $113/t CFR India, signaling softer landed replacement costs.

Meanwhile, Freight rates also corrected, with Richards Bay-Paradip routes down $4.8/t w-o-w on 7 April. Rates were heard at $21-22/t for Indias west coast and $23-24/t for the east coast, lowering import parity.

Portside stocks rise on fresh arrivals

Portside thermal coal inventories across India increased 3.3% w-o-w to 13.53 mnt in week 14, compared with 13.10 mnt in week 13, indicating continued stock build-up amid fresh cargo arrivals across both east and west coast ports.

The rise in stocks, despite moderate absolute inventory levels, added further pressure on sellers already facing low enquiries and increased competition.

Domestic coal remains preferred

Buyers continued preferring domestic coal over imports due to better pricing economics and stable supply availability. Domestic thermal coal prices remained stable w-o-w, with 5,000 GCV at INR 6,600/t and 4,500 GCV at INR 5,200/t exw-Bilaspur, as per BigMint's assessment.

Market participants noted that domestic coal remained the preferred sourcing option for many consumers, especially as imported coal prices, though correcting, still remained reasonable.

Outlook

Market participants expect further downside in South African coal prices following the US-Iran ceasefire and freight correction, along with domestic coal competitiveness, traders anticipate further softness in the coming days.