Owing to the depreciating South African currency and lower demand from EU, the popular South African RB-2 steam coal in Indian market has shown some downside.
Current offers for South African RB-2 steam coal are assessed at USD 62-64/MT CIF India for May’15 deliveries based on quantity and port.
A Coal importer cum trader based in Karnataka mentioned offering the material at USD 62-63/MT CIF Krishnapatnam port for early May deliveries, whereas another trader based in the eastern region is offering same grade at USD 64/MT CIF Vizag port for May deliveries.
South African Currency depreciation
South African currency Rand fell by 9% in last six months; and witnessed a depreciation of approximately 1.7% again last week; reported to be 12.1 on Monday. At the moment, exporters are taking advantage of currency depreciation. On the other hand continuous fall in global Coal prices coupled with falling currency is exerting pressure on exporters to reduce their offer prices.
According to economic experts of the nation, depreciation in Rand has resulted into high importing cost but, has definitely been a benefit for exporters.
Vessel Freight Rate
The freight cost of shipping Coal in Panamax vessel from South Africa to India is assessed at USD 10-11/MT. In last one month freight has been unchanged and has been in the range of USD 8-11/MT for all size of bulk vessels.
South African Coal Vessel At Indian Ports
As per SteelMint analysis, about 0.42 MnT of South African Coal is expected to arrive at Indian ports in coming two weeks. Adani Enterprises is importing about 165,000 MT South African Coal which is expected to arrive at Dhamra port on 15 Apr’15. In the first half of Apr’15, India has imported about 0.7 MnT Coal in different ports.
| Coal Vessel Expected till 16-30 Apr’15 | ||||
| PORT | VESSEL NAME | QUANTITY | DATE | RECEIVERS |
| DHAMRA | AANYA | 165,000 | 15-Apr-15 | ADANI ENTERPRISE |
| PARADIP | IKARIA ANGEL | 45,000 | 15-Apr-15 | VISA |
| VIZAG | APUS | 55,000 | 17-Apr-15 | GANDHAR |
| GANGAVARAM | STAR DANAI | 55,000 | 18-Apr-15 | ADANI |
| GPPL – PIPAVAV | THOR BRAVE | 32,600 | 18-Apr-15 | UTCL |
| GPPL – PIPAVAV | CONSTANTINOS G O | 48,000 | 18-Apr-15 | N/A |
| HALDIA | STAR DANAI | 24,000 | 21-Apr-15 | N/A |
| Coal Vessel at Berth 1-15 Apr’15 | ||||
| PORT | VESSEL NAME | QUANTITY | DATE | RECEIVER- E |
| MANGALORE | STELLA DAWN | 80,000 | 2-Apr-15 | AGARWAL COAL |
| DAHEJ | INDUS TRIUMPH | 83,000 | 4-Apr-15 | APL |
| GANGAVARAM | CAPE KENNEDY | 78,700 | 6-Apr-15 | JSPL |
| BEDI | C PROSPERITY | 161,300 | 9-Apr-15 | ESSAR |
| KRISHNAPATNAM | BRAZIL | 148,000 | 11-Apr-15 | RAW MET |
| DAHEJ | WELTRUST | 82,500 | 11-Apr-15 | APL |
| DAHEJ | SUMMER LADY | 66,000 | 13-Apr-15 | HINDALCO INDUSTRIES |
Qty in MT
Source: SteelMint
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