en.Wedoany.com Reported - South African thermal coal prices continue to soften, primarily impacted by weak steel demand, subdued activity in the sponge iron sector, and ample domestic coal supply, dampening sentiment in the imported coal market.
Despite the price correction, it has failed to stimulate market inquiries. Most consumers continue to adhere to procurement on a need-to-buy basis, while traders struggle to digest existing inventories. Market participants reveal that nearly half of the sponge iron production lines in some regions remain shut, further limiting demand for imported coal.
According to BigMint's assessment as of July 2, 2026, RB2 (5,500 NAR) at Paradip Port fell by INR 200/tonne week-on-week to INR 10,600/tonne; RB3 (4,800 NAR) declined by INR 200/tonne to INR 9,400/tonne. At Visakhapatnam Port, RB2 fell by INR 150/tonne week-on-week to INR 10,450/tonne; RB3 declined by INR 200/tonne to INR 9,300/tonne.
On the inventory front, thermal coal stocks at major Indian ports fell by 1.6% week-on-week in Week 26 to 14.83 million tonnes, compared to 15.07 million tonnes in Week 25. The decline in stocks reflects steady offtake by power plants and industrial users. However, new vessel arrivals at several ports partially offset the inventory drawdown, keeping overall stocks ample.
Market participants report that buying activity remains extremely weak despite another price correction in South African coal. The market is largely in a wait-and-see mode, with no substantial improvement in inquiries or counteroffers. Traders indicate that offers for RBCT FOB 5,500 NAR are heard around $89/tonne, but buyers continue to resist procurement.
Participants note that traders are finding it increasingly difficult to sell coal already at Indian ports and are therefore reluctant to book new cargoes. Despatch remains slow, with most buyers only procuring for immediate needs. Spot transactions are limited, with reported deals including: 2,000 tonnes of RB3 (INR 8,500/tonne) and 5,000 tonnes of RB2 (INR 9,800/tonne) from Mangalore Port, and 10,000 tonnes of RB3 (INR 9,000/tonne) from Krishnapatnam Port.
Domestic coal remains the biggest challenge for imported coal suppliers. BigMint assessed 5,000 GCV coal prices stable at INR 5,500/tonne, while 4,500 GCV coal prices remained flat week-on-week at INR 4,050/tonne. Ample domestic supply, regular auctions by Coal India subsidiaries, and competitive pricing continue to encourage consumers to source coal domestically. Although port inventories declined slightly this week, supply remains sufficient, keeping imported coal procurement largely need-based.
The sponge iron market weakened further this week. PDRI DAP-Durgapur prices fell by INR 100/tonne week-on-week to INR 23,500/tonne. Market participants report a widening bid-ask spread, leading to reduced trade negotiations and limited transactions. Buying remains confined to immediate needs as persistently weak downstream steel demand continues to impact procurement.
The South African thermal coal market is expected to remain subdued in the near term. Weak sponge iron economics, sluggish steel demand, and ample domestic coal supply are likely to limit inquiries and volumes throughout the monsoon season. Traders anticipate that sellers will remain under pressure due to difficulties in liquidating existing inventories, thereby reducing interest in booking new cargoes. Market participants believe that a substantial recovery in imported coal demand is unlikely until the monsoon ends or downstream steel demand improves significantly.
