South African RB2 coal CFR India offers are still under pressure owing to falling demand of sponge and cement manufacturers.
South African imported coal offers are under pressure and offers experienced a marginal fall of USD 1/MT this week. South African RB2 coal is being offered at USD 60/MT CFR East Coast India for Aug’15 delivery, which was offered at USD 61-62/MT CFR last week. The grade is mostly preferred by Indian sponge and cement manufacturers.
Almost stable trends have prompted miners and traders to come out with comparatively lower offers. On one hand, the continuously falling sponge prices are restricting domestic manufacturers to purchase more imported material from the market, on the other hand country’s cement manufacturers are also low on demand in ongoing monsoon, currently working under capacity; also, many of them are undergoing maintenance work. Moreover, the CIF Indian offers have been range bound between USD 60-62/MT since last one month owing to moderate buying in the country as well as in global market.
An East Coast based trader highlighted, “Stock and sale material of South African 5500 NAR (RB2) coal is being offered in the range of INR 4600-4800/M CFR East Coast ports (all duties and clearance included), the offers can vary port to port owing to demurrage and difference in port handling charges.”
He also highlighted that few West Coast based traders are offering South African 6000 NAR (RB1) coal in capesize vessel at USD 66-66.5/MT CIF Kandla Port which will be delivered till the end of August. Meanwhile, South African low GCV coal RB3 is also being offered at USD 53/MT CFR Vizag Port for Aug’15 delivery.
Waiting Period at Indian Ports
- Vizag: 1 day
- Gangavaram: 2-3 days
- Paradip: 6-7 Days
- Dhamra: 7-8 days
- Haldia: 15 days
- Krishnapatnam: 3 days
Stock & Sale Offers of Adani Enterprises
South African grade 5500 NAR coal ready to sale material is currentlybeing offered by Adani at INR 4800-4900/MT at Gangavaram, Paradip and Vizag ports. Meanwhile same grade material is also being offered by the companyat INR 5200/MT at Dhamra Port. The prices are comparatively high owing to additional demurrage charges.
Expected Vessels from South Africa
India has imported about 0.9 MnT non-coking coal from South Africa in different ports till 9 July’15.
As per SteelMint’s data analysis, currently about 1.2 MnT of South African coal is expected to arrive at Indian ports in coming two weeks. Adani, JSW Energy, COSMOL and Swiss Singapore are expecting large vessels at different ports with total quantity of 0.7 MnT from South Africa. Vessels are expected to arrive by18 July.
| Port | Vessel Name | Quantity | Date | Importers |
| Krishnapatnam | Indian Friendship | 165,000 | 15-Jul-15 | JSW Steel |
| Gangavaram | Norfolk | 157,100 | 14-Jul-15 | Adani |
| Vizag | Aurora Venus | 165,000 | 18-Jul-15 | N/a |
| Mundra | Panormos | 123,000 | 10-Jul-15 | Cosmol Energy |
| Mangalore | Ocean Opal | 74,000 | 15-Jul-15 | Swiss Singapore |
| Paradip | Tokyo Bulker | 59,700 | 20-Jul-15 | RML |
| Vizag | Vishva Anand | 53,000 | 15-Jul-15 | India Coke |
| Vizag | Vishva Vijay | 50,000 | 10-Jul-15 | N/a |
| Mumbai | Evnia | 47,150 | 12-Jul-15 | Godavari Commodities |
| Kandla | Orinoco Pearl | 35,000 | 10-Jul-15 | N/a |
| Haldia | Andante | 28,600 | 08-Jul-15 | UML |
| Haldia | Archimedes | 25,000 | 10-Jul-15 | Anand Carbon |
| Haldia | Far Eastern Jupiter | 24,000 | 14-Jul-15 | Adani Enterprise |
| Haldia | Alpha Progress | 22,000 | 11-Jul-15 | Ankit Metal |
Source: SteelMint
Quantity in MnT
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