Weekly round-up: Indian coal market remains steady yet cautious amid weak demand

• Monsoon-led demand slowdown continues
  
  
• South African coal rises on firmer sponge tags
  
  

This week, India's coal market sentiment stayed broadly cautious. Domestic coal prices held stable as demand remained subdued, with SECL's auctions drawing only limited buying from existing players. Imported thermal coal prices saw mild upticks on higher freights and firmer sponge iron demand, yet buyers stayed hesitant due to sufficient port and power plant stocks. Coking coal offers showed disparity between Australian and Canadian cargoes, while met coke prices moved slightly higher in some hubs. Overall, market activity stayed thin, shaped by seasonal monsoon pressures, stable inventories, and cautious trading sentiment across segments.

Indonesian thermal coal prices ease as demand stays dull

Portside Indonesian thermal coal prices in India slipped in the week ending 11 July 2025 amid sluggish industrial demand and monsoon-linked slowdown. BigMint's data shows 5000 GAR fell by INR250/tonne (t) w-o-w to INR7,150/t at Kandla and INR7,050/t at Vizag, while 4200 GAR eased INR50/t to INR5,700/t and INR5,600/t. Coal stocks at power plants dropped to 59.88mnt from 61.18mnt but remained enough for around 20 days of generation. Globally, 5800 GAR inched up by $0.70/t w-o-w to $72.13/t, reflecting spot buying. The market is likely to stay quiet given high freight costs and a seasonal lull.

South African coal offers rise but buyers stay cautious

Portside RB2 (5500 NAR) offers in India climbed up by INR200-300/t w-o-w, helped by firmer sponge iron prices and slight trader optimism. A small RB2 deal was closed at INR7,500/t exw-Krishnapatnam. Yet, high domestic supply and cautious buying limited further gains. Portside stocks were steady at 15.92mnt in Week 27, while lump-based sponge iron tags rose INR100-200/t w-o-w in some regions. South African export offers moved up by $0.5/t, reflecting mild external support. Domestic coal prices remained flat; SECL's auctions saw low volumes with limited buyer interest.

Domestic coal prices unchanged; auctions draw modest interest

Domestic coal prices held steady w-o-w, as per BigMints assessment, with 5000 GCV at INR4,700/t and 4500 GCV at INR4,250/t exw-Bilaspur. Market activity stayed muted, with scattered offers and hardly any fresh buying. SECLs latest auctions offered lower quantities and saw limited participation, mostly from existing buyers, reflecting weak industrial demand and continued cautious sentiment.

India's met coke market stays mixed amid cautious demand

Indias met coke market showed mixed movements this week, as traders stayed wary, ahead of new import quota news. As of 9 July 2025, BigMint assessed BF-grade met coke at INR28,500/t ex-Jajpur, up by INR500/t w-o-w, while Gandhidham prices held steady at INR29,000/t.

Import bookings slowed, with buyers waiting for fresh quota allotments. In steel, pig iron in Durgapur edged up by INR100/t d-o-d to INR32,300/t. Chinese met coke prices stayed firm, while Australian PHCC dropped by $5/t w-o-w to $178/t FOB. Overall, the market looks steady but cautious.

BigMint coking coal index slips as offers stay mixed

BigMint's premium hard coking coal (PHCC) index stood at $194/t CNF Paradip on 11 July, down $2/t from a week earlier. A west India-based mill booked 40,000 t of Australian PHCC at about $196/t CFR for end-August, but Canadian offers stayed softer at $175-180/t CNF. Indias coking coal imports rose 11% m-o-m to 6 mnt in June, driven by higher Australian shipments.

Imported pet coke offers rise on costlier freight

Imported pet coke offers in India were up by $3/t w-o-w as freights climbed, with rates for US-origin cargoes now at around $45/t. BigMint's data shows US-origin offers rising to $110-112/t CFR from $107-109/t, while Saudi-origin offers moved to $109-111/t from $108-110/t. Meanwhile, June's pet coke imports slipped 23% m-o-m to 1million tonne (mnt) as buyers slowed purchases before the monsoon, keeping near-term demand outlook subdued despite firmer prices.

Coal freights to India edge up on seasonal cargo push

Dry bulk coal freights to India climbed up this week as cargo movements improved. Panamax rates on the Australia-India route rose by $0.8/dry metric tonne (dmt) to $16.10/dmt, with steel mills stocking up before monsoon disruptions. South Africa-India Panamax rates nudged up by $0.1/dmt to $13.60/dmt, though trade stayed muted. Supramax rates from Indonesia to Navlakhi gained $0.21/dmt to $14.11/dmt, driven by firmer forward freight agreements (FFAs) and weather delays.