South African thermal coal offers have been unpredictable and hovering at higher side owing to rising Indian demand coupled with high sea freight rates these days.
South African 5500 NAR coal, mostly preferred by Indian sponge utilities, is hovering on upper side. Current offers have moved up by USD 1-2/MT, CFR India amid of high sea freight and rising Indian demand before arrival of monsoon. This is also supporting market to keep on upper side. But, high rates deterring fresh deals into India.
The mentioned grade is being offers at the range of USD 52-53.5/MT, CFR India for May’16 loading for Capsize and Panamax shipments.
It is reported by an East Coast based trader that high sea sale offers reached at USD 54-54.5/MT at Dhamra Port. Whilst, Gangavarm high sea sale is assessed at USD 54/MT.
South African coal prompt cargo CFR India offers have risen marginally owing to rise in index and current freight rates. Currently, 5500 NAR Panamax shipment is offered by a trader at USD 53-53.5/MT, CFR Gangavaram Port for May’16 loading. While, 4800 NAR offers have reached at USD 42-43/MT, CFR Indian ports.
Meanwhile, constant rise in South African prices is hampering Indian buying as uncertainty in South African coal index making buyers undetermined for fresh deals. On the other side, washed domestic coal and cheaper alternatives are still in options and ready to compete.
A market participant mentioned that offers for old ready to sell 5500 NAR material is available at INR 4,700-4,800/MT at Paradip Port (all duties and clearance included, taxes will be added further).
Vessel freight rates
Sea freight rates have gone up now a days. Also, freight for shipping coal in Panamax vessel from South Africa to India is assessed at USD 8-9/MT for East Coast ports.
Meanwhile, freight for all size of bulk vessels is supportive now; driven by increased crude oil market and hovering in the range of USD 6-10/MT.
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