An Indian trader bought a Capesize cargo of South African
Richards Bay thermal coal early on Wednesday at $103.45/MT FOB, market sources
said.
Platts 90-day Richards Bay FOB prices have been in a downtrend over the last
few weeks, easing down to $103/MT at the close Tuesday, an eight-week low.
Traders said sellers of South African coal had to reduce their offers in order
to compete with those of lower-priced US and Colombian material in India and
China.
According to market players, Indian coal trading firms
earlier this month have been awarded significant imported coal supply
contracts, “we could see increased Indian activity in the spot
market.”
In other news on coal supply contracts, Indian trading house
Adani won a 4 million mt of coal supply contract with state-run utility NTPC
while state-run traders MMTC and MSTC bagged a tender to supply Tamil Nadu
Electricity Board with 1.05 million mt of imported coal.
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