South African RB2 coal CFR India offers are stable owing to lack of buying interest in the global market.
South African imported grade RB2 coal, mostly preferred by sponge manufacturers, is offered at USD 61-62/MT CFR India for July’15 shipments. Meanwhile, same grade stock and sale material is offered at INR 4600-4800/MT at different Indian East Coast ports. Moreover, offers have been same since last few weeks owing to moderate buying in India as well as in international market. At present global demand seems quiet and the prices may get strength when Chinese demand will be back to square one.
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).Currently in India, only big players such as Adani Enterprise, JSW Steel, Tata Steel etc. Are the major participants in import activities and small buyers are unwilling to take position in the coal market.”
South African grade ready to sale material offers may vary at different ports; currently, 5500 NAR coal stock and sale material is being offered at INR 4600/MT at Vizag Port for July shipments. On the other hand, same grade material is being offered at INR 4700/MT and INR 4800/MT at Paradip and Krishnapatnam ports respectively. The prices are comparatively high owing to additional demurrage and handling charges.
South African RB3 (4800 NAR) imported material for Panamax shipment is being offered at USD 54/MT CFR at Krishnapatnam Port.
Total Import from South Africa in FY15
South Africa, one of the largest exporters of coal to India, has supplied about 28.9 MnT of coal in FY15. India’s coal import for South African grade has risen by around 50% in FY15. India has imported about 26.6 MnT of non-coking coal in the recently ended fiscal, which was about 17.5 MnT in FY14.
Vessel Freight Rate
The freight of shipping coal in Panamax vessel from South Africa to East Coast of India is assessed at USD 11/MT. Freight has increased marginally in last one month and is currently in the range of USD 8-13/MT for all size of bulk vessels.
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