South African thermal coal price rally to continue and touch the level of USD 65-66/MT, FOB for Aug’16 loading. In Contrast, demand is still moderate from the major importing countries.
South African thermal coal offers jumped again by 5-6% compared to Jul’16 prices. Current index for 6000 NAR is reflected at USD 66/MT for Aug’16 shipments. Although, higher offers persist since long which has dragged buyer’s attention towards Indonesian coal rather than South African as Indonesian grades are available at cheaper prices now.
As per the market Index, South African RB1 (6000 NAR) prices hit highest since Dec’14 and crossed the level of USD 65/MT, FoB which was at USD 65.8/MT in Dec’14 record.
South African 5500 NAR coal, mostly preferred by India is on higher side at USD 60-61/MT, CFR Indian Port for Aug’16 loadings. While, low CV 4800 NAR is offering at USD 49-50/MT, CFR for the same month.
One of the East Coast based trader highlighted that South African coal prices are moving up too fast, resulting in slow buying interest among the buyers of South African grades. But, continue rally in the market shows some acceptance as buyer have no oher option rather than to procure higher priced material.
Also, he added that prices will remain stable at the same level till Sep’16 end.
The company is offering 2 Panamax vessel of 5500 NAR and 4800 NAR at USD 60-61/MT and 49-50/MT, CFR East Coast India respectively which will reach by the end of Aug’16.
It is also heard by a Colombian coal importer or end user in India that Colombian coal movement is slowdown in India on the wake of shrunken gap between South African and Colombian coal CFR offers. Besides, Australian thermal coal is also moving up on back of upward index and growing sea freight market persistently.
In addition, Colombian 6000 NAR thermal coal is being offered at USD 70/MT, CFR India for Aug’16 loadings whereas South African 6000 NAR is available at USD 70-71/MT, CFR India.
Leave a Reply