South African coal offers to India remained on upper side and expected to continue further for short period as witnessed some support from Indian buyers.
Offers of South African coal, mostly traded in India, has remained on higher side and assessed at USD 44-45/MT, FoB (5500 NAR) Richards bay for April loadings. Few Indian buyers are getting offers at USD 51-52/MT, CFR Krishnapatnam port for Apr’16 loadings in Panamax vessel. Meanwhile, low GCV 4800 NAR material is also trading at USD 41-42/MT, CFR East Coast Indian ports.
While, 5500 NAR Panamax shipments at Dhamra, Paradip and Gangavaram are hovering at USD 53-54/MT, USD 52/MT and USD 52.5/MT, CFR respectively for Apr’16 loadings.
However, buyers and traders are wary in current trade as market seems to be highly volatile now. On the other side, few Indian buyers are showing interest to purchase on current prices to book material in April.
Moreover, it is to be noted that rise in South African coal index seems to keep market support at the movement as buyers inquiries have increased in the market.
One East Coast based trader mentioned, currently offering ready to sell material of 5500 NAR South African coal at INR 4,300-4,400/MT at East Coast ports (all duties and clearance included, taxes will be added further).
[su_quote]An East Coast based trader highlighted, “South African coal offers have risen by 12-13% since Jan’16. Recently, we are getting more enquiries in last 3-4 days, Indian buyers are interested to purchase on current offers as prices not looks to go down now. Also, South African 6000 NAR is being offered at USD 54/MT for current bookings.”[/su_quote]
He also added, we are getting call for Apr’16 shipments. Buyers are ready to purchase material with minor negotiations at current level as not expected any sudden fall in the month.
Few of the market expert anticipated that current price hike is for short duration. In addition, traders are much cautioned to decide exact price level and wanted to monitor prices this week.
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