South African Coal prices have started to rise after falling in most of the period of March.
South African Coal prices have gained momentum after demand from Indian buyers increased. Index price for API4 which fell to a low value of USD 78/MT in late March has climbed back to USD 81.5/MT this week.
Indian Market Scenario:
Indian Thermal coal imports are expected to increase as buyers look to stock coal before the start of monsoon begins around May. As during monsoon season, many ports will halt their operations.
Higher Indonesian prices have drifted Indian buyers towards more competitive South African Coal. As evident from the fact that Indonesian coal imports have fallen by 4% W-o-W to 2.16 MnT in Week 12 in comparison with 2.24 MnT while imports from South Africa has increased by 46% W-o-W to 0.998 MnT during the same period, as per the vessel line-up data maintained by CoalMint research.
South African Coal Offers:
Due to low availability of 4800 NAR Coal and increase in Demand, discounts offers to 6000 NAR have dropped to USD 16/MT from about USD 20/MT early last month. However, buying interest for 5500 NAR was not as high due to the higher discount offered for 4800 NAR.
“Trading is completed at a lesser amount of USD 1-2/MT to Market price, as buyers were not interested in buying at such high costs”, commented an Indian Trader.
The market price for 5500 NAR material was assessed at USD 75-76/MT CFR East coast at Krishnapatnam, Paradip ports. While for low CV 4800 NAR material it was USD 58-59/MT CFR East Coast.
However, offer price for the 5500 NAR material was USD 74/MT while that for 4800 NAR coal it was USD 57/MT, CFR East Coast India.
Stock and Sale Offer:
In Visakhapatnam port, 5500 NAR coal is available for sale at INR 5950/MT and 4800 NAR coal at INR 4900/MT excluding taxes.
Leave a Reply