South African Thermal coal prices reflecting instability since couple of weeks on the ground of slowing demand globally. Besides, prices are still high compared to early 2016.
South African coal offers have been corrected on regular basis, declined at an average by USD 2-3/MT, FoB, compared to last week. Although, buyers are rather quiet now and not in hurry to accept fluctuating offers. Moreover, owing to lack of deals in South African ports, prices are moving down and so buyers are still looking for price stability in near term. Slow Chinese buying activities have hampered the overall coal index prices. South African coal index API4 is fluctuating on daily basis and yesterday it reached at USD 85.5/MT, FoB an increase by 1 – 1.5/MT in a day. South African 6000 NAR coal is being offered at USD 83-84/MT, FoB Dec’16 loadings. While 5500 NAR and 4800 NAR coal is offering at USD74- 75/MT and 58/MT, FoB respectively.
One of the Indian Importer said, “owing to high volatile South African coal market in last 2-3 weeks, no enquiries have heard till now. While, Indian buyers are unable to decide over the current fluctuations as it is a wait and watch mode.”
In India, South African RB2 coal (5500 NAR) is being offered at USD 85/MT CFR East Coast India for Dec’16 loadings. Meanwhile, low GCV RB3 is being offered at USD 68/MT CFR Gangavaram Port for Dec’16 loading. Stock and sale material of South African coal has come down by INR 200-300/MT at port, few traders, having small quantities are offering 5500 NAR coal at INR 6,400-6,500/MT CFR Gangavaram port (all duties and clearance included), and the offers can vary INR 100-200/MT port to port owing to difference in port handling charges.”
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