South African 5500 NAR (RB2) Coal, which is currently in high demand by Indian Sponge iron manufacturers, is assessed in the range of USD 74-76/MT CIF India based on quantity and delivery period.
Thermal Coal prices have been declined from last consecutive weeks in response to weak demand from international market. Currently, a panamax vessel for October delivery is offered at USD 75-76/MT CIF and USD 74-75/MT CIF at West and East Coast of India respectively.
With rising Coal prices in the domestic market, import has been surging continuously.
The Supreme Court in its recent hearing on 09 Sep, 2014 has reserved order on Coal blocks allocation, which were declared illegal on 25 Aug, 2014. Court’s final order on de-allocation case may decide Coal imports dynamic. The court has not given the next hearing date to pass the order. If de-allocation of blocks would happen, Coal prices and freight rates will boost up with an expected increase in imports.
Currently, Indonesian 4800 GAR is offered at USD 50/MT FOB. Meanwhile, 4200 GAR is offered at around USD 36.6/MT FOB. Traders are delaying long-term negotiations, as they are trying to assess the impact of court’s decision.
Leave a Reply