Imported offers for 5500 NAR coal was assessed at same level as last week. However, the buyers are not keen to import aggressively.
5500 NAR coal supplied from South Africa & Australia was assessed (weekly) at USD 71-73/MT CIF India, unchanged from last week. Though, offers have remained stable. South African & Australian 5500 NAR steam coal is mostly used by Sponge iron manufacturers. The material was in demand a couple of months back when Coal India had reduced e-auction quantity by 5% (3 MnT), which was earlier at about 12.5% (58 MnT) of total production. Currently, only 7% of CIL’s monthly production is being sold through auction.
Speaking to importers and end users, it was assessed that current offers are prevailing in the range of USD 71-73/MT, CIF India varying on quantity and delivery period. Indian importers mentioned that demand has fallen in the Indian market amid falling Sponge offers. Quite a few sponge units are temporarily shut across India.
Waiting Period across Different Ports
Krishnapatam: Within 1-2 day
Gangavaram: 5-6 days
Paradip: 2-3 Days
Dhamra: 10-15 days
Coal buyers prefer to import at Gangavaram & Krishnapatnam port owing to minimum waiting time and large vessel handling capacity. Krishnapatnam waiting time rose as capsize arrival have been increased since few weeks.
“Offers are as they were last week, but currently only selective buyers are keen to purchase. A couple of months back, India’s coal demand had improved on the background of uncertainty prevailing over Coal block de-allocation. The situation is different now; there are many suppliers and limited buyers. Also, falling Rupee has hit our sales”, said an importer based in Mumbai.
On similar lines, Sponge manufacturers indicated that they have cut down their production on disparity between raw material and semi finished prices. Also, some fall has been noticed in recent domestic auction prices.
Stock & sales at Krishnapatnam Port was assessed at INR 5,200-5,300/MT and around INR 5,300-5,500/MT at other ports on east coast of India.
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