- South African coal FoB prices remain stable w-o-w
- Indian sponge iron prices fall by INR 600/t w-o-w
Prices of RB2 (5500 GAR) coal in the Asian thermal coal market remained stable w-o-w at INR 10,000/tonne (t) ex- Vizag. Prices of RB3 (4800 NAR) coal at Vizag Port were recorded at INR 8,400/t, unchanged w-o-w.
Prices in the Asian thermal coal market remained range-bound due to persistent gap between offers and bids which further restricted fixed-price trades.
However, there has been demand for South African coal, but a few suppliers are maintaining high offers. Suppliers are offering July and August loading cargoes mainly due to limited availability of July tonnage due to the derailment issue and the annual maintenance at RBCT.
Deals this week
- According to market participants, a end user purchased about 35,000 t RB1 at $125/t
- Another deal for 6,000t RB2 coal booked at 9,900/t Ex Vizag port.
- A deal was heard to have been concluded for south-based plant for 10,000t RB2 at INR 10,300/t
Factors impacting South African coal prices
South African prices at portside:Portside prices of RB3 (4800 NAR) coal have remained stable w-o-w and are currently assessed at $79/t, FoB levels. Similarly, RB2 (5500 NAR) coal prices stood unchanged at $92/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 by 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.
As per data maintained with BigMint, Indian imports from South African coal for the month till 29 May are expected at around 2.55 mnt. About 1.12 mnt of thermal coal are further expected by the country in May.
Sponge iron prices fall this week
Sponge iron (P-DRI) prices fell by INR 600/t w-o-w to INR 28,300/t exw Raipur on 31 May.
Outlook
South African coal prices are expected not to see any significant change very soon. However, the recent train derailment and the closure of two rail lines to Richards Bay Coal Terminal have led to a little supply issue, exerting pressure on South African thermal coal prices. Although one rail line has since reopened, the continued strong summer demand from India may help stabilise prices.