South African coal prices have maintained stability during the week, after witnessing a drastic fall from the previous month’s offers.
An Indian trader was skeptical of the increase in coal offers, citing that the prices had to be corrected given that offers had already risen to significant high on global cues. In addition, lack of buying among Indian buyers due to improved domestic supply and the free fall in Indonesian coal market, had too lowered the offers for South African coal.
South African coal index API-4 had touched USD 98.3 in Feb’18, since then the index has been falling continuously and was assessed at USD 88.10 for Apr’18 shipments.
Market participants had informed that the tightness in coal supply had prompted miners to reduce discounts on coal. Current offers for 5500 NAR coal was heard at a discount of USD 6/MT for Apr’18 shipments, while 4800 NAR coal was available at a discount of USD 11-12/MT.
However, following the expected ease in supply in the coming months, discounts for forward buying for May’18 shipment were assessed at a USD 7/MT for 5500 NAR coal and USD 13/MT for 4800 NAR coal.
5500 NAR coal was offered at USD 74-75/MT, FOB Richards Bay for Apr’18 shipments. 4800 NAR coal was offered at USD 60-61/MT, FoB Richards Bay.
For Indian buyers, offer for 5500 NAR coal was assessed at USD 88-89/MT, CFR basis for panamax vessel. 4800 NAR coal was priced at USD 74/MT, CFR India.
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