In Week 44, South African coal prices remained more or less unchanged. 5500 NAR coal hovering at the range of USD 84-85/MT, CFR India for Nov’16 loadings.
After hitting the index at 40-month highest last week, South African 6000 NAR coal price seems stable at the range of USD 87-88/MT, FoB. It’s very difficult to make any forecast on price movement on the back of volatile market scenario . Last week was reflected as a golden week for South African coal market because index had hit the highest since Jul’13 and touched at USD 90.8/MT, FoB for Nov’16 loadings.
Owing to fast upward moving South African coal prices, there is lack of buyer’s participation in the market. Moreover, the market is completely on wait and watch mode.
Mentioned by an East Coast based importer, “In India traders are holding their offers on the wake of rising coal index day by day. On the other side, buyers are not much interested to opt material on the given level.”
South African coal offers assessed at 5500 NAR (RB2) at USD 84-85/MT, 4800 NAR at USD 69-70/MT, CFR East Coast of India for Nov’16 loadings. Meanwhile, on the basis of current index, RB1 offers reached at USD 94-95/MT, CFR India.
Increased Chinese buying over the weeks, rising Korean demand, strong paper trading and higher Australian thermal coal index have been driving South African coal market up. While, supply shortage in South Africa, Indonesia, Australia and Chinese domestic market is also one of the major reason behind price hike.
South African stock & sale offers at ports have turned up sharply on the wake of recent price hike.
Stock and sell material offers for RB2 by an Indian trader at INR 6,400-6,500/MT at Paradip and Dhamra Port. Whereas, at Vizag and Gangavaram ports, same grade material is available at INR 6,300/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 5,400-5,500/MT at East Coast Port.
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