On 12 Oct’16, South African Thermal coal index (API4) hit freshly high and touched at USD 79.8/MT, FoB for Nov’16 shipments. While, Oct’16 index was witnessed abit lower at USD 79.3/MT, FoB Richards Bay.
South African coal price index have again hit a fresh record and reached at 32 month (since Feb’14) highest yesterday for Nov’16 loadings. Meanwhile, South African coal index (Nov’16 shipments) rose by about 12-15% to USD 79.5/MT, FOB compared to last month.
The current trade offers of South African 5500 NAR (RB2) coal increases by USD 7-8/MT, FoB for Nov’16 deals. After witnessed a sharp growth in Oct’16, currently, it is hovering at the range of about USD 65/MT, FoB.
However, Indian buyer’s remained quiet towards sharp hike in South African coal prices. In India, buyers are yet to find a price stability to take market position.
South African 5500 NAR coal, mostly traded in India rose again and offers heard at USD 74-75/MT, CFR at West Coast ports. While, low CV South African RB3 (4800 NAR) is available at USD 63/MT, CFR India.
[su_quote]Mentioned by a trader based at Mangalore port, “Owing to eager buying of Australian thermal coal by China, Taiwan and Korea along with supply shortage of Indonesian grades in the market drives South African coal offers higher day by day. Also, it is expected that prices may go stronger in the near-term.” [/su_quote]
Stock and Sale Offers at Port
India’s stock & sale coal prices have also turned up sharply on the wake of high imported offers. Besides, Indian East Coast based traders are eyeing on profit margins and holding South African coal stock at ports.
Stock and sell material offers for RB2 by an Indian trader at INR 5,600-5,700/MT at Paradip Port. Whereas, at Vizag and Gangavaram ports, same grade material is available at INR 5,500/MT loaded on truck basis (all duties and clearance included, VAT & CST will be added further). Very less quantity of 4800 NAR is been offered at INR 5,000/MT at Paradip Port.
Indian Imports
As per SteelMint data analysis, India have been importing at an average about 3.7 MnT coal from South Africa per month since Feb’16. In Sep’16, monthly imports have increased by 9% to 2.5 MnT compared to Aug’16. It is also noted that Indian imports is falling down on the back of higher global offers.
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