South African 5500 NAR thermal coal current spot offers are firm at USD 48-49/MT, CFR India for Jan’16 deliveries.
South African coal prices are declining continuously because of flooded market with various offers amid bearish global sentiments. While this reflecting a downtrend for further Feb’16 booking at USD 47/MT, FoB RB1.
South African RB2 prices have declined to USD 40-41/MT, FoB and 48-49/MT, CFR India respectively for Jan’16 bookings. At present, the same material on HSS is being offered at USD 49-50/MT, CIF Kandla, which may reached on 2 Feb’16.
India, a conventional buyer of South African coal, is not supporting the market currently as they are focusing on petroleum coke and domestic material rather than imported South African grades.
[su_pullquote align=”right”]One West Coast based trader said, “Offers for South African coal may decline further as highly driven by continuous falling Pet coke offers and weak Indian sponge market, which have declined by 8-9% (down by about INR 1,000/MT) in last 15 days. In the first week of Feb’16, we are offering about 20,000 MT RB2 on HSS at USD 49-50/MT, Kandla.”[/su_pullquote]
Low GCV South African offers are stable at USD 38-39/MT, CFR India for Jan’16 bookings. In addition, demand is moderate for the grade as few consumers are preferring high GCV material from South Africa with domestic grade. This seems more economical alternative to Indonesian coal.
Stock and sell material offers for RB2 is almost sold out by Indian traders and very less quantity is available at ports now. The material is offered at INR 4,000-4,150/MT and INR 3,900/MT (all duties and clearance included, VAT & CST will be added further) at Paradip and Kandla ports respectively.
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