South African 5500 NAR coal offers witnessed at USD 49-50/MT CFR India for Oct’15 arrival, declined about 15-16% as compared to early Sept’15 offers.
Offers for South African RB2, majorly used in sponge making, have declined by about USD 2-3/MT in this week and are at USD 49-50/MT CFR East Coast India for Oct’15 delivery. Few deals have also been heard at USD 48/MT CFR India.
The offers have already bottomed out in this year, falling weekly on the grounds of subdued Indian demand, coupled with rising domestic availability by CIL, which is stalling the recovery of sponge grade coal in the market. On the other side, there is not much buying interest from Indian sponge makers owing to recent volatility in INR against USD.
[su_quote]Adani Enterprises, one of the largest traders in India highlighted, “Currently South African RB2 CFR India offers declined to USD 49-50/MT for Oct’15 delivery. Also same grade 40,000 MT ready to sell material is being offered by the company at INR 4,200-4,300/MT at Gangavaram Port (VAT and CST will be added further).” [/su_quote]
Also, low GCV South African RB3 is currently offered at USD 38-40/MT CFR East Coast India for Oct’15 delivery. Meanwhile, about 20,000 MT stock and sale material of same grade is being offerred at INR 3,900/MT at Dharma Port.
Although, South African 5500 NAR grade 50,000 MT ready to sell material is being offered by another trader at INR 4,200/MT at Vizag Port (all duties and clearance included).
Total Import from South Africa in FY15 & FY16
South Africa, one of the largest exporters of coal to India, has supplied about 28.9 MnT of coal in FY15. India’s coal import for South African grade has risen by around 50% in FY15. India imported about 26.6 MnT of non-coking coal in FY15, which was about 17.5 MnT in FY14. In the current fiscal (Apr’15-Aug’15) India has imported about 14.2 MnT of non-coking coal from South Africa.
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