South African Thermal coal prices are hovering within USD 50-52/MT, CIF India for Dec’15 end deliveries.
Limited supply of Thermal coal has driven market globally, which had reflected a hike in Nov’15 mid, after witnessing constant decline during a year. Current offers for South African grades are more or less stable on grounds of lack in supply.
In addition, Indian buyers are preferring other substitute such as Australian Thermal coal, which has become viable now owing to its GCV value and price competitiveness.
At present, South African RB2 (5500 NAR) coal is offered at USD 49-51/MT and USD 50-52/MT, CIF Krishnapatnam, Vizag and Kandla Ports for Dec’15 loading. While, low GCV South African RB3 is offered at USD 39-40/MT, CIF India and South African high GCV 6000 NAR coal at USD 60-61/MT, CIF East Coast of India for Dec’15 shipments.
However, Indian buyers are also preferring to import low GCV South African coal owing to its low moisture content. Currently, a panamax vessel of about 70,000 MT South African RB3 is offered at USD 39/MT, CIF Krishnapatnam, which is expected to reach at the port till Dec’15 mid.
[su_quote]An official from a biggest coal trading firm in India highlighted, “At present, offers are stable as there is a huge gap between offered and expected prices by buyers. On the other side, South African coal demand is subdued in India amid weak sponge market. Currently, we are offering South African 5500 NAR at USD 51/MT, CIF Gangavaram Port in panamax vessel for Dec’15 loading.”[/su_quote]
Stock and sell material offers have declined currently at ports and very less quantity is available now. The material is offered at INR 4,200-4,300/MT (all duties and clearance included, VAT & CST will be added further) at all Indian ports.
At present, 2 capsize vessels (3 MnT) of Australian 5500 NAR Thermal coal are expected to reach at Gangavaram and Dhamra Ports till the month end.
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