Australian & South African Steam coal CFR offers down by USD 1-2/MT in current week on the backdrop of depreciated vessel freight and steady demand in the global market.
A Mumbai based importer reported to offer 5500 NAR South African origin at USD 73-74/MT CIF Indian East Coast in panamax, delivery in December (demmurage on buyer’s account). Another importer is offering South African 5500 NAR (RB2) at around USD 71/MT CIF Krishnapatnam in capesize.
A Sponge manufacturer, a regular buyer of imported coal reported to have offers in the range of around USD 72-73/MT CIF Vizag port delivery in December. Stock & sales prices for 5500 NAR assessed at around INR 5,450/MT Vizag port and around INR 5,300/MT at Krishnapatnam port.
Waiting Period across Different Ports
Krishnapatam: Within 1 day
Gangavaram: 4-5 days
Vizag: About 2-weeks (about 15 days)
Dhamra: 10-15 days
Coal buyers prefer to import at Gangavaram & Krishnapatnam ports on the background of minimum waiting time and large vessel handling capacity.
Coal Prices in E-auction shows Marginal Downfall
Buyers are reluctant to pay high prices in coal e-auctions. In the recent e-auction conducted by SECL (South Eastern Coalfield Limited) for 0.45 MnT coal received bids lower by INR 500-600/MT compared to previous auction prices.
As per a participant, “Current bid prices are around 70% higher than base prices of SECL. 4900-5200 GCV (G8) grade coal from Baroud OC for 45,500 MT has received bid of around INR 3,458/MT against a base price of INR 2,028/MT.”
Baroud OC 3700-4000 GCV (G12) for 55,400 MT coal has received bid of upto INR 2,418/MT against a base price of INR 1,068/MT. The mine has also received bid of INR 3,488/MT for G8 sized ROM (4900-5200 GCV). Another coal mine, Manikpur OC (stock) G12 sized ROM for 32,200 MT coal has received bid of INR 2,758/MT against a base price of INR 1,068/MT.
Currently, South African RB2 coal (stock and sale) is being offered at INR 5,300-5,400/MT. Meanwhile, SECL’s current coal auction has received highest bid of INR 4,770/MT for G5 sized ROM (5800-6100 GCV).
Rupee a Concern
Depreciating INR against USD is also a major concern for Indian importers. Rupee has breached 62 levels, which has made imports expensive by at least INR 70-100/MT.
Leave a Reply