South African RB2 prices have been stable since a couple of weeks, following price pressure on miners and subdued demand.
South African labour strike doesn’t have much impact on Thermal coal index. Contrastingly, low volume of 6000 NAR at Richards’s Bay terminal reflecting a marginal rise on RB1 index. About 20% shortfall of RB1 is noted at Richards Bay port during current week. RB1 buying has reduced in India, also lack of bookings have seen for the material.
Meanwhile, South African 5500 NAR (RB2) offers seem more or less stable after earlier decline in offers.Currently, it is being offerred at USD 48-49/MT, CFR East Coast for Nov’15 loading.
South African low GCV 4800 NAR is being offered at USD 38-38.5/MT, CFR India for Nov’15 deliveries. But, still market seems very pessimistic for any near-term hike on the grounds of limited buying interest.
[su_quote]A market participant stated, “While considering present market scenario and price stress on miners, it can be anticipated market may go down. It would not be surprising if RB2 offers will touch USD 42/MT, CFR India level till the end of Oct’15.”[/su_quote]
An official from Adani Group highlighted that current offers for RB2 have gained some stability at USD 48-49, CFR India. The company is offering about 8,000 MT ready to sell material at INR 4,300/MT at Paradip Port.
He further added, offers at Dharma port are comparatively high amidst 8-10 days weighting time at port. Current offers are assessed at USD 50-51/MT, CFR India.
Ananother market player said to heard a few offers below USD 47/MT, CFR India levels but haven’t seen any trade at that price.
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