As one of the largest coal importer (China) has a declining trend of coal buying in international market over increased production that has consequently resulted in slumping coal prices as it reached to the two year low now. In contrary SteelMint assessed that demand for imported coal has been increased in Indian market as users are keeping inventory for monsoon period, also ripping up the benefit of International slumped prices.
SteelMint expect prices to remain range bound at this level for next two – three month due to overall weak demand in Asian market.
Low coal price will ease the condition of power industry as they are struggling with financial losses, as the power tariff remain low and costing of production remains high. Other coal users (Cement, Steel) also may gain some benefit of same.
Ex-plot imported Coal Prices in April and May (1st week)
April 13 1st Week May 13
Avg Price Price range Avg Price Price range
Indonesian (5300-5400 GCV) 3023 2900 – 3325 3027 2900 – 3300
S.Africa RB 1 Grade 5911 5900 – 6000 5900 5900
S.Africa RB 2 Grade 5566 5085 – 5800 5603 5550 – 5900
Note: Price mention above is ex plot, payment advance and taxes extra
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