After experiencing a constant downfall since a year, now South African coal market witnessed a marginal rise of USD 2-3/MT for Dec’15 deliveries.
Low availability of South African coal has supported prices to inched up by around USD 2-3/MT W-o-W. India’s most preferred grade for DRI units, South African origin RB2 is being offered at USD 51-52/MT, CFR East Coast India for Nov’15 loading.
After a marginal rise, current offers of 5500 NAR coal are assessed at USD 52/MT, USD 51/MT and USD 50-51/MT, CIF India at Dhamra, Paradip and Haldia ports respectively for Dec’15 deliveries.
South African coal index for 6000 NAR (API4) has also reached to USD 51.5/MT, FoB Richards Bay today for Nov’15 loading, which was USD 49/MT a week ago.
[su_quote]An official from one of the biggest coal trading firm in India highlighted, “At present, market is bearing lack of cargo availability for current loading as South African big miners have already booked for Dec’15 shipments. In addition, continuous production cut in the country has resulted in scarcity of South African coal for now.” [/su_quote]
He further added, currently India is also eyeing on Russian 5500 NCV Thermal coal amid very competitive price and prime quality compared to its conventional sources.
Stock and sell offers are at the same level as a week ago at INR 4,100-4,300/MT (all duties and clearance included, VAT & CST will be added further) at all Indian ports.
Indian sponge market
India is the largest destination for South African coal as most suitable for DRI units. On one hand, South African global offers have raised after a long time, on the other, coal demand is still subdued in India owing to depressed sponge market.
Sponge prices have declined to INR 2,000/MT M-o-M and corrected around INR 1,000/MT in last 10 days. In the current week, prices have fallen by INR 300/MT (78-80 FeM C-DRI) in central east India.
At present, India is highly focused to import high GCV material due to increase in availability of lower grade domestic coal, which requires good quality imported material for blending.
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