South African thermal coal offers have remained fairly constant throughout this week primarily owing to an expected slowdown in Chinese imports for the remainder of the year, above-average temperatures in northeast Asia and high stocks at the Richards Bay Coal Terminal.
Expectedly, China’s import curbs would divert more Indonesian and Australian coal toward the Indian market, which in turn might compel the South African coal exporters to offer higher discount levels in order to compete with cheaper alternative coals.
Meanwhile in South Africa, satellite images of coal being loaded onto docked ships in Richards Bay Harbor have recently caused an outrage among frustrated citizens through social media.
According to mining analysts, South Africa is exporting 77 million tons of coal per annum to countries in Asia, viz. Japan, China, and India, despite the nation’s power utility, Eskom, complaining of dire shortages.
Reportedly, Eskom has admitted that it has failed to meet the nation’s power demands which has resulted in rotational load shedding.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 93/MT fob Richards Bay South Africa.
RB2 (5,500 kcal/kg NAR) coal is assessed at around USD 62/MT fob Richards Bay South Africa.
RB3 (4,800 kcal/kg NAR) coal is assessed at around USD 48/MT fob Richards Bay South Africa.
For Indian buyers, the above offers amount to USD 107, 76 and 62/MT respectively, after charging an average freight rate of USD 14/MT for Panamax vessel type.
Source: CoalMint Research
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