South African 6000 NAR Thermal coal offers still remain strong this week at the level of USD 58-59/MT, FoB Richards Bay. Contrastingly, there is limited buying interest in the market.
South African coal offers have remained on upper side this week and also rose by USD 3-4/MT in last 15 days. South African RB1 is currently offered at USD 58-59/MT, CFR India for April loading, which was traded at USD 56-57/MT in early Feb’16.
Moreover, it is to be noted that rise in South African coal index failed to keep market support at the movement as any physical trade have not heard yet on the offered price. In addition, Indian buyers are looking more discount to book material on Apr’16 and May’16.
An Indian trader highlighted, “Few Japanese tender for imported coal is likely to open in coming month. South African coal miners and traders are waiting and holding their offers to push up market prices.”
South African 5500 NAR, mostly preferred by Indian sponge and cement utilities, is being offered at USD 48-49/MT, CFR (Panamax) at East Coast Indian ports to be delivered at the end of Apr’16. 
At Haldia port, South African R2 material is being offered at USD 49/MT, CFR for April loading. Meanwhile, South African 5500 NAR offers are hovering in the range of USD 41-42/MT, FoB Richards Bay.
The physical trade for South African 5500 NAR is heard at USD 46-47/MT, CFR East Coast India for Apr’16 deliveries. Meanwhile, low GCV 4800 NAR is being offered at USD 40-41/MT, CFR East Coast India for Apr’16 loading.
One East Coast based trader mentioned, currently offering ready to sell material of 5500 NAR South African coal at INR 3,800 MT at Vizag port (all duties and clearance included, taxes will be added further ).
Vessel freight rates Freight for shipping coal in Panamax vessel from South Africa to India is assessed at USD 6.5-7/MT. Meanwhile, freight for all size of bulk vessels has increased now owing to lack of availability.
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