- South African (RB-2) steam coal prices are hovering in the range of USD 74-76/MT CIF India
- Australian 5600 NAR steam coal is offered at USD 75/MT CIF India, having 24-28% VM and around 54% FC
- Indonesian 4200 GAR steam coal is in the range of USD 47-48/MT CIF India, having 40-42% VM, 37% FC and around 6-7% Ash content
- Indian imports of steam coal stood at around 12.8 MnT till 26 Sep, 2014
Imported 5500 NAR steam coal, having volatile matter 22-24%, is assessed in the range of USD 74-76/MT CIF India based on quantity and delivery period.
Current vessel waiting time at ports is around 20 days for Dhamra port, around 1-day at krishnapatnam and maximum 1-2 days at Gangavaram port. Importers prefer to import at Gangavaram & Krishnapatnam port owing to minimum waiting time and large vessel handling capacity.
A trader based in western India is offering South African 5500 NAR steam coal at USD 74-75/MT CIF Krishanapatnam port and USD 75-76/MT CIF Gangavaram/Vizag port; delivery in mid-November. Current waiting time is maximum 1-day at Krishnapatnam port.
Another Indian trader based in eastern region is offering Australian 5600 NAR steam coal at USD 75/MT CIF. However, buying interest is seen at USD 74/MT levels.
Indian Power & Steel Companies wait for Government’s Direction on Coal Blocks De-allocation
After the SC’s verdict on cancellation of 214 coal blocks in the hearing 0n 24 Sep, 2014 Indian buyers are still seeking clear directions from central government on how and when will these blocks be auctioned.
Imported offers uptick for Indonesian coal but Indian buyers have still not accepted this price hike.
Sponge & Cement manufacturers’ coal imports have been registered a rapid growth from last 3-4 months on the background of coal block de allocation and reduction of quantity in e-auction.
Demand strengthens for South African/Australian Steam Coal
Auction platform prices are picking up post reduction of quantity in e-auction. Meanwhile, imported price is around 25% cheaper than domestic auction prices. At present state of affairs, Sponge iron manufacturers are compelled to import in order to cater the need of running plants, urged a Sponge iron manufacturer.
Currently, Chhattisgarh based 6-member promoter group – Real Group, Gopal Industries, Mahindra, GR Group, Bhagwati & Vaswani Industries are importing around 1 lakh MT of coal from Australia to feed their 11 Steel & Sponge iron plants. However, vessel is yet to arrive, said one of the members at Chhattisgarh Sponge Iron Association.
As per SteelMint assessment, India has imported around 15.9 MnT of coal till 26 Sep, 2014, out of total around 12.8 MnT comprises Thermal coal.
Indonesian Coal
Currently, Indonesian 4200 GAR is being offered at USD 47-48/MT CFR India. Meanwhile, 3800 GAR is offered at around USD 41-42/MT CFR India.
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