International Non-Coking Coal prices remain on grounds with no supporting demand from market and major suppliers.
Due to dull demand, Coal suppliers are not able to raise Coal prices and working with very thin margins. China, which is possessing high Coal stocks at port and low cost supply from domestic sources, is putting pressure mainly on Australia, Indonesia & South Africa.
S. African Coal Prices leads
Australian Non-coking Coal prices trading below South African 6,000 NAR Coal with the difference of around USD 1/MT. Australian origin 6,000 NAR Coal trading at around USD 73/MT FOB New Castle, whereas South African 6,000 NAR grade Coal trading at USD 74/MT FOB RBCT.
Few sources said that South African Non-coking Coal is selling on premium of USD 0.5-1/MT owing to less availability.
Indonesian Coal Prices Stable
Indonesian low grade Coal prices are stable, whereas high grade Non-coking FOB prices are up by around USD 1-2/MT owing to limited availability. Indonesian low grade Coal i.e. 3,400 & 3,600 GAR Coal is trading at around USD 24-25/MT & USD 27-28/MT FOB basis. Premium grades i.e. 5,800 GAR is trading at around USD 68-70/MT FOB, which is USD 1-2/MT more than Indonesian Coal index.
Emerging Indian Market
Indian market has emerged as major buyer as its Coal buying appetite has increased on upward demand and stagnant domestic Coal supplies. India has imported around 19 MnT in May ’14, which is almost 6% more than last month. Market experts are optimistic on Indian Coal demand and believe the new Indian government will bring many reforms to support manufacturing, infrastructure and power industry.
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