South African 5500 NAR coal offers are steady for Oct’15 delivery for want of positive response in the current volatile market index.
Offers for South African RB2, majorly used in sponge making, are stable at USD 49-50/MT CFR India, having declined by about USD 2-3/MT in the preceding week.
At present, inquiries from buyers have increased, but they are not making quick decisions on buying, preferring deeper analysis since the market seems volatile now. Few buyers have also insisted for RB2 material at USD 48/MT CFR India.
While on one hand, the government has increased supply to support domestic manufacturers, on the other, global offers have reached their bottom which is driving buyers towards imported material. Indian demand for South African coal seems more or less stable as high GCV imported material is still cheaper than domestic coal.
One market participant highlighted that few imported cargoes were already cancelled by the buyers earlier at Paradip Port, owing to uncertain price index which made sellers more attentive towards current trade.
[su_quote]Adani Enterprises, one of the largest traders in India highlighted, “Currently South African RB2 CFR India offers have declined to USD 50-52/MT CFR India for Oct’15 delivery. Also same grade 20,000 MT ready to sell material is being offered by the company at INR 4,200-4,300/MT at Paradip 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.
Another trader based in East Coast India is offering South African RB2 35,000 MT ready to sell material at INR 4,250/MT at Gangavaram Port (all duties and clearance included).
Total Import from South Africa in FY15 and 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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