South African Thermal coal offers have remained stable at USD 48-49/MT, CFR India as Indian buyers are keen to purchase competitive material now.
After seen prolonged fluctuations during couple of months, now South African Thermal coal prices seem to be stable and stood at USD 48-49/MT, CIF East Coast India for Jan’16 deliveries. While, low GCV South African RB3 is being traded at USD 39/MT, CFR Vizag Port for current bookings.
Indian utilities, a major buyer of South African grade, is preferring to import South African low GCV 4800 NAR material instead of RB2 owing to its comparatively low price and less difference in their GCV value.
A market participant highlighted, “Indian buyers are preferring other substitute such as Australian Thermal coal, which has now become viable owing to its GCV value and price competitiveness. At present, cement manufacturers are buying Australian coal.”
Currently, a large quantity of Australian 5500 NAR Thermal coal is available for ready to sell at East Coast ports. In addition, fresh cargoes for Jan’16 bookings are available at USD 47-47.5/MT, CFR East Coast Indian ports.
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.
Few market analysts commented that it’s not reflecting any positive hope for recovery further owing to depreciating Indian currency and industrial slowdown in China. It is not right time to be optimistic anymore on current scenario.
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