Weekly round-up: Coal market balances firm supply with cautious buying trends

• South African offers stay high, trades remain limited
  
  
• Domestic auctions show firm premiums and steady demand
  
  

For the week ending 28, the coal market reflected a firm yet cautious tone. Export offers across origins stayed elevated, supported by supply-side constraints and freight strength. However, buying activity remained selective as margin pressures in downstream segments limited aggressive procurement. Domestic auctions indicated steady participation, while imported coal faced resistance at higher levels. Overall sentiment was stable but subdued, with buyers largely requirement-driven and awaiting clearer direction.

Indonesian coal prices firm

Indian portside prices of Indonesian-origin thermal coal rose w-o-w for the week ended 27 February 2026 amid limited offers and continued RKAB-related uncertainty. As per BigMint's assessment, 5,000 GAR increased by INR 50/t to INR 8,350/t at Kandla and INR 8,250/t at Vizag.

Similarly, 4,200 GAR rose by INR 150/t to INR 6,450/t at Kandla and INR 6,500/t at Vizag, while 3,400 GAR edged up by INR 50/t to INR 4,900/t at Navlakhi. Indonesian benchmarks also gained, with 5,800 GAR up $1/t, 4,200 GAR up $2.6/t and 3,400 GAR up $0.7/t, supporting portside sentiment.

South African thermal coal firm, trade slow

South African thermal coal prices at Indian ports rose w-o-w on firm export offers. As per BigMint's assessment, exw-Paradip RB2 increased to INR 10,600/t and RB3 to INR 9,200/t, up INR 200-250/t. At Vizag, RB2 rose to INR 10,500/t and RB3 to INR 9,100/t, up INR 250-300/t. FOB RBCT 4,800 NAR was heard at $75-76/t against bids near $72/t, while 5,500 NAR was offered at $92-93/t. CIF Haldia was around $108/t and CIF Paradip $106/t, but buyers resisted. Port stocks fell 3.05% w-o-w to 13.63 mnt. Sponge iron P-DRI DAP Durgapur increased by INR 100/t w-o-w to INR 25,100/t; however, sentiment remained weak and trade activity stayed thin.

Domestic coal steady; premiums firm

Domestic non-coking coal prices remained stable w-o-w, as per BigMint's assessment, with 4,500 GCV at INR 4,900/t and 5,000 GCV at INR 5,950/t exw Bilaspur.

In the 19 February 2026 SECL auction, 543,750 t was allocated at an average INR 3,029/t, indicating firm premiums over reserve prices. Strong participation and premium intensity across key grades continued to support positive market sentiment.

Coking coal index drops

BigMints PHCC index fell by $10/t w-o-w to $250/t CNF Paradip on 27 February 2026 amid cautious sentiment and lower bids. One fresh deal was heard, with 30,000 t of Australian Goonyella PHCC booked at $245/t CFR India for May loading. Improved supply expectations and softer global cues after Chinese holidays weighed on prices.

Australian PHCC FOB declined by $6/t to $237/t. Domestic BF-grade met coke rose to INR 35,000/t ex-Jajpur and INR 30,500/t ex-Gandhidham. Rebar prices in India increased by up to INR 1,000/t w-o-w, with primary mills list prices rising to INR 58,50060,000/t on a landed basis.

Met coke edges higher

Indian BF-grade metallurgical coke prices rose marginally w-o-w on 26 February 2026, supported by firm import parity and balanced domestic fundamentals. In eastern India, BF coke increased by INR 200/t to INR 35,000/t ex-Jajpur, while western India rose INR 100/t to INR 30,500/t ex-Gandhidham. Foundry-grade coke remained steady at INR 36,100/t ex-Rajkot.

Indonesian BF coke was indicated at $270-275/t CFR India, equivalent to around INR 34,000-34,500/t landed, providing a pricing floor despite softer bids. Pig iron in Durgapur declined to INR 37,650/t, reflecting cautious downstream sentiment. Overall, prices stayed supported but range-bound.

Petcoke firm; coal competition rises

Global petcoke prices stayed firm in late February 2026, supported by tight US supply and limited refinery output growth. US Gulf high-sulphur coke traded in the mid-$80s/t FOB, while delivered prices into Europe and Brazil hovered near $115/t. Asian demand softened post-Lunar New Year, yet supply constraints kept prices supported.

In India, high-sulphur petcoke offers remained at $128-132/t CFR west coast, though buying stayed thin as cement producers trimmed inventories before year-end. US NAPP coal at $123-125/t CFR emerged as a key competitor, narrowing the fuel price gap. Tight global supply and steady blending demand are expected to keep both fuels structurally supported.

Coal freights extend gains

Dry bulk coal freights to India increased w-o-w on 27 February 2026, with Pacific routes leading gains amid tight vessel supply and steady cargo demand. Australia-Paradip rates hovered near a two-year high, while Indonesia-Paradip reached a two-month high. Atlantic routes also stayed firm due to limited vessel availability.

Brent crude rose $1.93/bbl w-o-w to $72.88/bbl for the May 2026 contract, supporting bunker costs. The Baltic Dry Index climbed 98 points to 2,117, with Panamax up 100 points to 1,916 and Supramax rising 139 points to 1,299, reinforcing firm freight sentiment.