Indian buyers are looking for more competitively priced South African coal as an alternative to Indonesian coal.
South African coal is seeing as a better value in India especially for the Power sector. 4800 NAR and 5500 NAR coal were offered at a discount of USD 16-18/MT and USD 8/MT respectively, to 6000 NAR prices.
Indian thermal coal imports are expected to increase in the coming months, as port operations may be disrupted due to oncoming monsoon season which starts around May.
Indonesian coal prices remained stable on the higher side because of bad weather that had affected production in Kalimantan. Also, there was road haulage issue which further limited cargo availability for low-CV coal.
Even though roadblock issue is being resolved, Indonesian miners were focused on delivering delayed commitments and so have not many cargoes for spot markets. As a result, Indian Buyers have shifted their focus towards South African coal.
South African 4800 NAR coal narrowed to a discount USD 16-18/MT from above USD 20/MT as the demand for South African coal had picked up for April Loadings. While 5500 NAR material is available at a discount of USD 8/MT. RB1 6000 NAR coal was assessed at USD 78/MT, FoB for April Loadings.
In India, Price offers for RB2 5500 NAR coal is assessed at USD 76-77/ MT, CFR East Coast, while that for low CV 4800 NAR coal is available at USD 58-59/MT, CFR East Coast April loadings.
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