South African coal prices came down slightly as API-4 index fell to USD 92.05/MT this week. Once it seemed like that the index might cross the 100 USD mark, however, the decline in Newcastle coal index restricted further rise of South African coal prices.
Offers for 5500 NAR was assessed at USD 77-78/MT, FOB South Africa, while 4800 NAR coal, available at a discount of USD 15-16/MT to 6000 NAR coal was offered at USD 61-62/MT, FoB Richards Bay this week.
Despite the slight fall, South African coal prices are still high among the Indian buyers who have returned to market after the monsoon period.
An Indian based trader was heard saying, “Many coal importers were hoping that coal prices will remain low and were waiting for the monsoon season to end, but owing to the rise in the international coal market, South African coal prices have went up and now they are forced to buy coal at high rates.”
Also the rising prices for bulk vessel freight have pushed coal offers for Indian Buyers. Freight charge from Richards Bay to India for Panamax vessel has increased to USD 13-14/MT, while for Supramax vessel it was assessed at USD 14-15/MT.
Offer for 5500 NAR coal was heard at USD 89-90/MT, CFR India, while for 4800 NAR coal it was assessed at USD 76-77/MT, CFR India.
Stock and Sale offer for 5500 NAR coal was quoted at INR 6600/MT (GST charges to be included) at Krishnapatnam and Mangalore port. While offer for 4800 NAR coal was heard at INR 5500/MT.
Sponge Iron manufacturers which also prefer South African coal, are importing the coal despite the escalated prices, given the robust demand in the country.
In order to provide them sigh of relief the Ministry of Coal is going to start the Third Tranche of Coal Linkage auction especially for sponge iron sector, which would be the third phase of the current auction after the previously concluded auctions for Cement and Other sub-sectors under the non-power sector.
Total coal quantity of 7.755 MnT has been offered for the auction starting from 9 Sep’17, the scheme related document for which has been uploaded on the MSTC website.
| Date | Subsidiary | Source | Mode | Grade | Size | Quantity | Notified Price | Secondary Source |
| 9-Sep | SECL | Amadand OC | Road | G6 | (-) 250 mm ROM | 700,000 | 2,280 | Dhanpuri OC |
| 9-Sep | MCL | Hingula OCP, Talcher Field | Road | G13 | (-) 100 mm | 100,000 | 860 | Balaram OCP, Talcher Field |
| 9-Sep | CCL | Magadh OC | Road | G10 | ROM | 2,000,000 | 1,180 | Not Available |
| 10-Sep | SECL | Baroud OC | Road | G8 | (-) 100 mm ROM | 100,000 | 1,700 | Not Available |
| 10-Sep | MCL | Samleshwari OCP, IB Field | Road | G13 | (-) 100 mm | 100,000 | 860 | Basundhara OCP, IB Field |
| 10-Sep | CCL | Amrapali OC | Road | G11 | (-) 100 mm | 1,600,000 | 970 | Not Available |
| 11-Sep | SECL | Chirimiri OC | Road | G7 | (-) 250 mm ROM | 300,000 | 1,920 | Rani Atari UG |
| 11-Sep | NCL | Block-B | Road/RcR^ | G5 | STEAM | 25,000 | 3,020 | Not Available |
| 11-Sep | CCL | Amrapali OC | Road | G10 | (-) 100 mm | 1,600,000 | 1,180 | Magadh OC |
| 12-Sep | SECL | Dipka OC | Road | G10 | (-) 100 mm ROM | 200,000 | 1,180 | Jampali OC |
| 12-Sep | ECL | Sonepur Bazari siding | Rail | G4 | STEAM (-) 100mm | 250,000 | 3,270 | Not Available |
| 12-Sep | SECL | Gevra OC | Road | G11 | (-) 100 mm ROM | 250,000 | 970 | Kusmunda OC |
| 13-Sep | SECL | Jampali OC | Road | G15 | (-) 250 mm ROM | 50,000 | 720 | Baroud OC |
| 13-Sep | WCL | Sasti Expn OC | Road | G11 | (-) 100 mm CRUROM | 80,000 | 1,250 | MUNGOLI OC |
| 13-Sep | SECL | Khairaha UG | Road | G6 | (-) 250 mm ROM | 50,000 | 2,280 | Rajendra UG |
| 16-Sep | SECL | Kusmunda OC | Road | G11 | (-) 250 mm ROM | 250,000 | 970 | Gevra OC |
| 16-Sep | SECL | Mahan II OC | Road | G12 | (-) 250 mm ROM | 100,000 | 910 | Chhal OC |
Source: MSCT Ltd
Quantity in MnT
Price in INR/MT
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