Quick European booking led South African coal prices has recovered sharply in last month.
SteelMint assessed that South African coal prices has risen sharply till end of October by almost 15% to USD 84/MT FOB basis (6000 NAR Kcal/kg) from September prices.
While discussing with market traders they advised, rise in price is followed by the over booked quantity for delivery in October, which booked in September when prices were on the lowest side.
One of the Mumbai based coal trader said, South African coal paper market becomes center of attraction of world wide traders and as on September South African coal prices touched ground, most of the physical and paper market trader booked a lot which made market to jump high.
Most of the South African coal quantity has ordered by the European buyers.
During the same time Australian thermal coal prices has not improved as such, because no improved buying has seen from China. However constant demand from Japan and other buying countries has been noted.
Australian thermal coal (6000 NAR Kcal/kg) FOB New Castle basis rose by 1.2% (M-o-M) to USD 84/MT at the end of October, where the price had dropped to USD 81/MT FOB in mid of month on dull demand but it picked up with positive sentiment of South African coal prices and reached at the end of October at 84.
Coal freight market also dropped at the end of October in comparison to previous month.
Indonesia to India Panamax and Cape vessels freight has been dropped almost USD 1/MT. Currently offered freight in market at USD 11-11.5/MT for Panamax vessel from Indonesia to East cost of India and for same route cape size vessels is being offered at USD 10-10.5/MT.
Cape size vessel freight from RBCT to East Coast of India has seen a substantial drop in a month. It has dropped by USD 5/MT and currently offered at USD 14-15/MT. However Panamax vessel freight losses almost USD 1/MT and currently offered at USD17-18/MT.
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