South African coal prices have seen downward correction this week, as Richards Bay coal terminal (RBCT) resumed normal operations.
RBCT had experienced a high arrival pattern of vessels during Jun’17, due to which the coal terminal was facing loading delay. As a result, coal prices had increased to levels last seen during Jan’17.
However, Officials from RBCT have confirmed that they have cleared surplus coal stock and are continuing their normal operations.
Spot offers for 5500 NAR coal have come down to USD 70/MT, FoB Richards Bay this week, while offers for 4800 NAR were heard at USD 56/MT, FoB Richards Bay.
Despite fall in spot offer for coal due to low demand, South African Coal Index API-4 was still hovering in the range of USD 82 this week, as a consequence of high global coal prices.
Australian coal prices were rising due to strike activities going around at Glencore’s Hunter Valley coal mining operations, also heavy rains in Indonesia had restricted production resulting in surge in prices.
Coal prices in Australia and Indonesia are increasing as a result of supply tightness, which are also supporting South African coal prices, commented an Indian Trader.
Indian Market Scenario:
Indian buying is expected to remain subdued as most of the buyers have stocked coal for monsoon period.
Offer for 5500 NAR coal was heard at USD 81/MT, CFR India, while for 4800 NAR coal offer was heard at USD 67/MT, CFR India.
Stock and Sale offers:
5500 NAR coal was offered at INR 6050/MT (excluding GST) at Krishnapatnam port, INR 6100/MT (excluding GST) at Mangalore port, and INR 6700/MT (excluding GST) at Kandla port.
4800 NAR coal was quoted at INR 5350/MT (excluding GST) at Krishnapatnam port this week.
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