South African thermal coal prices have risen marginally for Jul’16 shipments. Moreover, Jun’16 loading is also reflecting a gain this week.
South African coal offers are again moving upward for current loadings as offers registered a rise of USD 1/MT today. South African 6000 NAR is reflecting a gain of about USD 1-2/MT to USD 62/MT for Jul’16 shipments.
5500 NAR coal is available at USD 57/MT, CFR at Paradip and Vizag Ports for Jul’16 loading. While, South African 6000 NAR offers are heard at USD 68-69/MT, CFR at the same ports.
However, low CV South African material 4800 NAR is available at USD 48/MT, CFR Indian ports.
One East Coast based trader mentioned, “Continuous rise in South African coal offers is limiting Indian buying interest. Limited physical trades have concluded in the market owing to huge gap between sellers and buyers expectations. While, offers have been on higher side since a couple of weeks. Contrastingly, no such additional demand has been witnessed globally.”
Indian buyers, majorly sponge utilities, are waiting for price corrections in South African coal offers as sponge industry is not performing well amid weak steel market.
In the current scenario, Colombian 6000 NAR thermal coal offers are seem to be more competitive as it is being offered at USD 47-48/MT on FoB basis. While, CNF India offers are heard in the range of USD 57-58/MT at West Coast ports.
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