India: South African coal portside trades remain thin on limited inquiries from sponge iron players

• Sponge iron prices drop by INR 450/t w-o-w
  
  
• Higher freight, low inquiries weigh on market sentiment
  
  

South African thermal coal prices at Indian ports remained broadly unchanged this week amid weak buying interest and sluggish inquiries from sponge iron players. BigMint's latest assessment showed RB2 (5500 NAR) offers stable at INR 8,450/tonne (t) exw-Gangavaram, while RB3 (4800 NAR) offers were at INR 7,200/t. At Paradip, slight weakness persisted with RB2 at INR 8,450/t and RB3 unchanged at INR 7,200/t.

"We were expecting pre-monsoon buying inquiries for South African coal to pick up. But no active inquiries have been seen so far. This is because of sponge iron price drop and uncertainties amidst US-China trade frictions", shared a source.

Recent deals:

• Vizag saw RB2 traded at INR 8,150/t for a 15,000-tonne deal.
  
  
• A bulk lot of 25-30,000 t of RB3 was also sold at INR 7,250/t ex-Dhamra.
  
  

Enquiries remained thin this week, with no sign of pre-monsoon stocking. Buyers continued to limit purchases to need-based volumes aligned with technical specifications.

Market highlights

Export prices remain firm: South African RB2 export offers softened slightly to $76/t FOB, while RB3 stayed unchanged at $63.5/t FOB as of 25 April.

Indian coal prices stable: Domestic coal (4500 GCV and 5000 GCV) prices were at INR 4,500/t and INR 4,950/t exw-Bilaspur, with SECL auction bids close to base prices.

Sponge iron under pressure: Domestic C-DRI prices slipped again by INR 450/t w-o-w to INR 26,700/t exw-Rourkela, dragging down sentiment in the coal market.

Outlook

With freight rates high and demand for sponge iron showing no signs of revival, South African portside coal prices may remain flat in the near term. Spot deals are likely to stay limited.