- South African coal prices stable w-o-w
- Indian sponge iron prices down INR 1,000/t w-o-w
Prices of RB2 (5500 GAR) coal in the Asian thermal coal market remain unchanged w-o-w at INR 10,200/tonne (t) ex-Gangavaram. Prices of RB3 (4800 NAR) coal at Gangavaram Port were recorded at INR 8,400/t, stable on a weekly basis.
In a recent update, Transnet informed of service disruptions on the coal line, which are adversely affecting train operations. On 14 June midnight, theft was reported in the section between Ermelo and RLRA, resulting in the closure of both lines. This disruption impacts services from Ermelo to the mines.
Also, last week, on the coal line at Enqolothi (AC side), Train 9424 failed, causing a double line blockage. Additionally, there was a broken rail at Uloliwe, leading to a suspension of service. This disruption impacted the supply of empty cars to the mines and other loading sites for General Freight Business (GFB). Service was resumed later in the afternoon.
A deal for RB2was heard to have been done at Vizag port for about 3,000 t at INR 10,200-10,300/t at Gangavaram port. Also, another deal of 4000 t Rb3 was heard concluded at Vizag port at INR 8,400/t.
Factors impacting prices
South African portside prices: Portside prices of RB3 (4800 NAR) coal have remained stable w-o-w and are currently assessed at $79/t FOB. Also, RB2 (5500 NAR) coal prices remained at $97/t FoB.
South African exports down in April: South Africa’s thermal coal exports dropped by 10% m-o-m to 4.75 million tonnes (mnt) in May 2024 as against 5.27 mnt in April 2024. However, exports dropped by 7% y-o-y to 4.75 mnt in May 2024 compared to 5.12 mnt in May 2023. South Africa thermal coal exports to India stood at 2.19 mnt in May 2024, dropped by 16% m-o-m.
Sponge iron prices fall
Sponge iron (P-DRI) prices fell by INR 1000/t w-o-w to INR 27,850/t exw Raipur on 14 June.
Outlook
South African coal prices are expected to remain stable. While supply constraints are anticipated due to the train derailment, disruptions will likely be offset by reduced demand and lower purchasing activity from major Asian countries.