South African coal offers to India remained stable this week on the grounds of devaluating Rand and depressed South African mining sector amid ongoing labor strike.
India, one of the largest destinations for South African Thermal coal, is receiving RB2 offers at USD 47-48/MT,CFR India for Nov’15 deliveries. The offers are same as a week ago.
Offers for South African 5500 NAR, mostly trade in India by sponge manufacturers, fell last week owing to persistent low global demand and devaluating Indian currency.
Depreciating South African currency coupled with depressed economy amidst running strike is likely to affect coal market further.
Market inquiries from buyers have been increased but they are not making quick decisions on buying as market seems highly volatile now. Current offers (5500 NAR) have been heard at USD 48/MT, CFR Indian East Coast for Oct’15 shipments, but few traders have also offered at USD 46-47/MT.
Meanwhile, low GCV South African RB3 is being offered at USD 38/MT, CFR Vizag/Gangavaram port for Oct’15 loading.
[su_quote]An official from Adani group highlighted, “Current offers exhibit some stability on the grounds of firm demand and few domestic issues in South African market. The company is offering about 8,000-10,000 MT South African RB2 coal stock and sale material at INR 4,300/MT at Paradip Port.”[/su_quote]
He also added that South African 5500 NAR is being offered for Oct’15 shipments at USD 48-49/MT, CFR India at Dhamra Port.
Another trader based at East Coast of India is offering same grade ready to sell material at INR 4,350/MT at Krishnapatnam Port (VAT & CST will be calculated further).
Vessel waiting period across different ports
Krishnapatam: Within 1-2 day
Gangavaram/Vizag: On arrival berth
Paradip: 4-5 days
Dhamra: 2-3 days
India remains largest destination for South African coal
India imported about 2.4 MnT of Thermal coal from South Africa in Sept’15against 2.36MnT in Aug’15. The country remains the largest destination for South African thermal coal.
During the six month of FY16, the country imported about 16.6 MnT of non-coking coal from South Africa.
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