en.Wedoany.com Reported - Thermal coal inventories at Indian ports rose slightly week-on-week, while sentiment in the South African thermal coal market remained subdued, with price trends showing divergence. According to BigMint's assessment, the FOB price of RB2 (5,500 NAR) at Paradip Port increased by 100 rupees/ton week-on-week to 11,500 rupees/ton, and RB3 (4,800 NAR) also rose by 100 rupees/ton to 9,900 rupees/ton. In contrast, the FOB price of RB2 at Visakhapatnam Port fell by 150 rupees/ton week-on-week to 11,100 rupees/ton, while RB3 remained flat at 9,800 rupees/ton.
Market participants attributed the divergence in price trends to differing seller strategies. Some traders lowered offers to stimulate buying interest amid a complete absence of inquiries, while others maintained firm offers due to high replacement costs and concerns over losses. Thermal coal inventories at major Indian ports increased slightly by 0.6% to 15.61 million tons in week 22 from 15.53 million tons in week 21, indicating a continued easing of supply conditions despite varying clearance trends across ports.
Participants noted that the gap between buyer bids and seller expectations remained significant. Most industrial consumers continued to purchase on a need basis and avoided buying new imported coal due to weak downstream demand and lower-priced domestic coal alternatives. At Gangavaram Port, traders reported that firm offer levels for RB2 and RB3 were around 12,000 rupees/ton and 9,950 rupees/ton, respectively, supported by rising freight rates, tight supply, and recent maintenance shutdowns at RBCT (Richards Bay Coal Terminal). However, market participants reported almost no inquiries at these price levels. Similarly, at Mangalore Port, RB2 offers were heard around 11,000 rupees/ton, and RB3 offers near 10,000 rupees/ton. Traders said that higher coal and pellet costs continued to squeeze sponge iron producers, forcing some plants to reduce operating rates.
Domestic coal continued to exert strong pressure on imported coal. Market participants reported stable domestic coal supply, supported by regular auctions and ample availability in major consumption regions. Buyers mostly preferred domestic coal, as imported coal remained uneconomical at current prices. Traders noted that procurement decisions continued to focus on immediate operational needs rather than building inventories. BigMint assessed the price of 5,000 GCV thermal coal as stable at 5,500 rupees/ton, while the price of 4,500 GCV thermal coal remained flat week-on-week at 4,050 rupees/ton.
Demand from the sponge iron sector remained weak. Market participants said that imported coal prices were difficult to absorb under current steel market conditions. The PDRI DAP-Durgapur price fell by 300 rupees/ton week-on-week to 23,650 rupees/ton, reflecting sluggish procurement activity and cautious sentiment. The finished and semi-finished steel segments also saw thin trading, with most buyers avoiding new orders. Participants noted that procurement remained largely demand-based, while uncertainty in steel demand and the onset of the monsoon season continued to dampen market confidence.
Sentiment in the South African coal market is expected to remain subdued in the near term, as weak industrial demand and a widening bid-ask spread continue to constrain trading activity. Although firm FOB prices, high freight rates, and supply-side constraints may support seller offers, meaningful buying interest is likely to remain limited unless downstream steel and sponge iron demand improves.
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