South African coal prices have continued their upward ascend, as strong paper market supports index prices. South African coal index had crossed USD 90/MT mark this week, however it dropped slightly to USD 89.55/MT yesterday.
Market participants have anticipated that domestic miners holding on to their coal stock could be the reason for the rising index price.
South Korean and Japanese utilities float tender for coal requirement during this period of the year. Domestic coal miners may be releasing limited coal supply in the market, to fetch higher bids to negotiate tenders, thereby keeping the index uptick.
Coal supply is fairly maintained, however miners may be holding their position in the market to gain profit, commented an Indian Trader.
Supply of 5500 NAR coal has been constant, but there is ample supply of 6000 NAR and 4800 NAR coal to make up for 5500 NAR coal, as it can be produced by blending above two coal grades. Also there is coal stock of 4.5 MnT available at Richard’s Bay Coal Terminal (RBCT), he added further.
Price of RB1 Coal (6000 NAR) was quoted USD 86-87/MT, FOB Richards Bay. RB2 (5500 NAR coal) available at a discount of USD 8.5/MT, was quoted at USD 74/MT, FoB Richards Bay. Coal price of 4800 NAR was heard at USD 59-60/MT, FoB Richards Bay at a discount of USD 15/MT.
Indian buyers have returned to the market after monsoon, however wide gap between offer and bid price have restricted their buying. While, offer for 5500 NAR coal was 86-87/MT, CFR India, buyers were demanding USD 82-83/MT, CFR India. Similarly, for 4800 NAR coal, buyers expectation was USD 70-71 against offer price of USD 73-74/MT, CFR India.
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