Richard’s Bay South African Coal Offers Remain Range-bound

South African 6000 NAR Thermal coal offers have remained range-bound from a couple of months at USD 48-51/MT, FoB Richard’s Bay.

South African coal spot offers are more or less remained firm for current bookings, also reflecting a range bound trend from couple of months. In addition, falling Thermal coal offers has tempted Indian buyers for the high GCV coal rather than Indonesian and other low GCV material.

South African 5500 NAR, mostly preferred by Indian sponge and cement manufacturers, is currently being offered at USD 48-49/MT, CFR India for Jan’16 bookings. While, low GCV South African RB3 is available at USD 39-40/MT, CFR India. South African coal prices have tumbled down more owing to weak performance by both industries.

However, Australian Thermal coal is being more attractive for Indian buyers. South African and Australian coal seem to be more economical alternative for Indian consumers.

[su_pullquote align=”right”]An East Coast based trader said, “India’s demand for South African low GCV coal is moderate. However, offers have decreased for Feb’16 & Mar’16 bookings. While, RB1 offers have ticked up marginally owing to spontaneous buying made by global manufactures.”[/su_pullquote]

Stock and sell material offers for RB2 is almost sold out by Indian traders and presently very less quantity is available at India ports. 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.

He further added, as per current scenario, coal market is not reflecting any positive hope in coming days.

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 increased by about 40% compared to 2014 imports.

South African coal import to India

Source: SteelMint
Quantity in MnT