- Indian sponge iron prices retreat after rising this week
- South African coal exports fall marginally in April
Prices of RB2 (5500 GAR) coal in the Asian thermal coal market remained stable w-o-w at INR 9,900/t ex- Vizag. Prices of RB3 (4800 NAR) coal at Vizag Port were recorded at INR 8,400/t, unchanged w-o-w.
The port of Gangavaram remains closed amid a workers’ agitation which has resulted in transportation being affected from the port. Coal is getting accumulated at the port and market participants believe the situation will continue for another month.
Furthermore, monthly prices of RB2 (5500 GAR) rose by INR 600/t in April compared to INR 9,300/t in March 2024. Similarly, RB3 prices rose by INR 500/t as against INR 7900/t in March 2024.
Deals this week
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According to market participants, 5,000 t of RB2 coal was booked at 9,900/t ex-Ennore port.
- A deal for 5,000 t of RB2 was heard at INR 10,000/t ex Vizag port.
Factors impacting South African coal prices
Sponge iron prices remain range-bound
Sponge iron (P-DRI) prices were assessed stable at INR 29,500/t exw Raipur on 10 May. After increasing early this week, sponge iron prices fell due to the downtrend in semi-finished and finished long steel prices.
South African prices at portside
According to sources, portside prices of RB3 (4800 NAR) coal remained stable w-o-w and are currently assessed at $82/t FOB. Similarly, RB2 (5500 NAR) remained unchanged w-o-w at $97/t FOB.
South African exports fall marginally in April
South Africa’s thermal coal exports fell by 2% m-o-m to 5.27 million tonnes (mnt) in April as against 5.36 mnt in March. However, exports dropped 6% y-o-y to 5.27 mnt in April compared to 5.60 mnt in April 2023. India was the leading buyer of South African coal at 2.59 mnt in April 2024, up 11% m-o-m as against 2.33 mnt in March.
Outlook
Imported South African thermal coal prices are anticipated to edge up on rising Indian demand and restocking before monsoons. Domestic production, however, continues to exert pressure on import markets. Demand for South African coal will continue to be high in India due to its higher carbon content.