Waning demand of South African coal, coupled with devaluating INR as well as Rand, depressed current market to go down to USD 48/MT CFR level for RB2 (5500 NAR).
South African 5500 NAR, mostly trade in India by sponge manufacturers, collapsed this week at USD 48/MT CIF India, delivered east coast ports in Oct’15 end.
Market inquiries from buyers have been increased but they are not making quick decisions on buying and are expected to book at negotiated price. Current offers from traders have been heard at USD 48-49/MT CFR India east coast for Oct’15 shipments.
[su_quote]An official from Kamachi group highlighted, “Market is highly volatile and falling frequently on the grounds of poor demand and strong negotiations. The company is offering about 50,000 MT South African RB2 coal at INR 4,400/MT loaded on truck at Krishnapatnam Port. Meanwhile, low GCV South African RB3 material is being offered by the company at INR 3,800/MT loaded on truck at same port.”[/su_quote]
He also added that South African 5500 NAR is being offered for Oct’15 shipments at USD 46-47/MT CFR India at Krishnapatnam Port.
Devaluating South African Currency
Constantly depreciating Rand, which has weakened about 16% against USD this year, also affected coal miners and traders and lead to frequent price cuts. Recently, the currency depreciated to Rand 13.85 from Rand 13.83 against USD.
India’s Coal Import from South Africa
India has imported about 2.4 MnT of Thermal coal from South Africa in Sept’15, which was at the same level in Aug’15. In H1 FY16, the country imported about 16.6 MnT of non-coking coal from South Africa.
Expected Vessel in Oct’16
| Port | Vessel Name | Quantity | Month | Remarks | Date | Receiver |
| Dhamra | Battersea | 57,000 | Oct-15 | Expected | 13-Oct-15 | Adani enterprise |
| Krishnapatnam | Sbi Camacho | 165,000 | Oct-15 | Expected | 02-Oct-15 | Kamachi |
| Krishnapatnam | Laura D | 113,100 | Sep-15 | Expected | 29-Sep-15 | Maheshwari |
| Gangavaram | Silver Geneva | 162,400 | Oct-15 | Expected | 08-Oct-15 | Bhushan Power |
| Haldia | Lia | 22,000 | Oct-15 | Expected | 02-Oct-15 | Cesc |
| Paradip | Lia | 32,400 | Sep-15 | Anchorage | 28-Sep-15 | Cesc |
| Paradip | Vishva Jyoti | 79,800 | Oct-15 | Expected | 02-Oct-15 | Bhushan Power & Steel |
| Dahej | Kalliopi l | 74,500 | Oct-15 | Expected | 12-Oct-15 | N/a |
Source: SteelMint
Quantity in MT
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.
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