South African Coal Index Hit Fresh High for Oct’16 Shipments

On 20 Sep’16, South African coal index for Oct’16 shipments recorded at USD 68.4/MT, hit 25 months highest since Sep’14. Besides. Sep’16 loadings (6000 NAR) are still hovering at USD 66/MT, FoB.

Following the remarkable growth in coal prices since May’16, South African current coal physical trade prices are hovering high at USD 66-68/MT, FoB for Sep-Oct’16 loading (6000 NAR). Whereas, 5500 NAR cargo is assessed at USD 55/MT, FoB Richards Bay, Sep’16 loading whose supply is limited.

Despite offers are still sky high, Indian buyers are returning back in the market after monsoon. With comparatively low bids, Indian buying interest are picking up slowly. On the other side, there is market speculation that offers may continue to sustain further on the same level till 2016.

As per an Indian trader, South African 5500 NAR coal is being offered at USD 62/MT, CFR at Gangavaram and Vizag Port. Also, he added that same grade material is offering at USD 64/MT, CFR Paradip Port.

Low CV South African RB3 (4800 NAR) is available at USD 53-54/MT, CFR India. High CV 6000 NAR coal which is barely traded in India is assessed at USD 73-74/MT, CFR India.

[su_quote]One East Coast based market participants highlighted, “In India, trader’s participation have been fallen for imports since couple of months. Highly volatile South African coal market made it difficult for the traders to take position. While at present India’s East Coast inquires have raised but only bulk end users are willing to take position.”[/su_quote]

Stock and Sale Offers at Ports
At present Indian buyers are keen to purchase stock material from different ports. India’s stock & sale coal prices have also turned up sharply in last one month owing to lack of stock level along with high global offers.

Stock and sell material offers for RB2 is offering by an Indian trader at INR 5,200/MT at Paradip port. At Vizag and Gangavaram same grade material is available at INR 5,000/MT loaded on truck basis (all duties and clearance included, VAT & CST will be added further). The material 4800 NAR is offered at INR 4,400/MT at Paradip Port.