South African RB1 coal offers are stable at USD 50/MT, FoB for Jan’16 shipments. The price stability is supported by strong spot buying globally.
Since the beginning of 2016, South African coal offers not reflecting any major changes and remained firm for Jan’16 bookings. South African 5500 NAR offers are assessed at USD 48/MT, CFR Dhamra Port for current bookings. While, Panamax shipments for Gangavaram and Vizag Ports are assessed at USD 47/MT, CFR India.
India, a major buyer of South African grade, is again attracting miners and traders’ eye to set on the country with a positive hope in beginning of 2016. The country had actively participated in South African coal trading over the last year as coal prices declined by about 28-30% in last 1-year.
[su_quote]A domestic trader mentioned, “India has increased its South African coal buying as the available grade is more competitive and good alternative than other imported thermal coal. South African coal market had witnessed prolonged fluctuations in 2015 due to oversupplied market and lack of buying response.”[/su_quote]
He also added, demand in India is stable owing to continuous depreciation in Rupee and rising domestic availability, which has been also affected India’s buying trend for short term.
However, India remains still a positive indicator for imported South African coal demand in this year as it’s more competitive for Indonesian grade. Nation’s import from South Africa has increased by about 40% compared to 2014 imports.
Quantity in MnT
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 anticipate that market will be under pressure in Q1 CY16 owing to depreciating Indian currency and industrial slowdown in China; hope to recover after china holiday.
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