South African thermal coal prices have gained further traction this week, on the back of global FOB trades getting concluded, despite the current lullness in the Indian market amid the ongoing monsoons.
In the Atlantic Basin, the South African export market was aided support by a spot deal in the physical market, and the financial 6,000 kcal/kg NAR market also traded higher.
The outlook still remains far from bullish in light of subdued buying interest observed in the main export destination of India.
The seasonal monsoon rains is affecting the dispatch of cargoes from ports along the western coast of India. Nevertheless, Indian power plants have sufficient coal stockpiles for about 15 days of consumption needs, according to sources.
Although at present the India-based buyers continue to tread carefully with the utmost caution, they are more inclined towards South African thermal coal as compared to Indonesian coal of similar heating value.
Reportedly, a 40,000 MT cargo of South African RB2 (5,500 NAR) coal was sold at INR 4,750/MT excluding taxes at the Gangavaram Port, located in Visakhapatnam, Andhra Pradesh.
Meanwhile, around 7 Capesize bulk carrier vessels are shortly expected to berth at Gangavaram port, details of which are enumerated below.
| Vessel Name | Cargo Type | Quantity (MT) | Month | Remarks | Date | Load Country | Load Port | Receivers |
| Cape Trader | Non-Coking Coal | 159,530 | Jul-19 | Anchorage | 2-Jul-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Adani Power |
| Pacific Creation | Non-Coking Coal | 167,453 | Jul-19 | Anchorage | 1-Jul-19 | South Africa | Richards Bay Coal Terminal (RBCT) | India Coke & Power |
| Stella Flora | Non-Coking Coal | 163,140 | Jun-19 | Anchorage | 30-Jun-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Swiss Singapore |
| Lowlands Brillence | Non-Coking Coal | 163,241 | Jun-19 | Anchorage | 20-Jun-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Agarwal Coal |
| Cape Buzzard | Non-Coking Coal | 160,000 | Jun-19 | Anchorage | 19-Jun-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Rawmet Commodity |
| Golden Zhoushan | Non-Coking Coal | 80,000 | Jun-19 | Anchorage | 16-Jun-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Imr Resources |
| Houston | Non-Coking Coal | 164,000 | Jul-19 | Berth | 1-Jul-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Swiss Singapore |
| Berge Nimba | Non-Coking Coal | 162,520 | Jun-19 | Berth | 28-Jun-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Swiss Singapore |
| Parker | Non-Coking Coal | 164,950 | Jul-19 | Expected | 7-Jul-19 | South Africa | Richards Bay Coal Terminal (RBCT) | Adani Enterprise |
Source: Customs, CoalMint Research
South African Discounts
The discount for 5,500 kcal/kg NAR coal remained relatively unchanged compared with the last week, at around USD 7.50/MT from the financial 6,000 kcal/kg NAR grade.
However, discount for the 4,800 NAR grade has moved up to USD 13/MT.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 61.29/MT FOB Richards Bay.
RB2 (5,500 kcal/kg NAR) coal is assessed at around USD 53.30/MT FOB Richards Bay.
RB3 (4,800 kcal/kg NAR) coal is assessed at around USD 42.12/MT FOB Richards Bay.
For Indian buyers, the above offers amount to USD 74.29, 66.30 and 55.12/MT respectively, after charging an average freight rate of USD 13/MT for delivery by Panamax vessel class.
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