South African coal prices have started to fall as the winter season in Europe approaches its end.
South African coal index price have fallen by USD 3-4/MT in the month of Feb’17 since reaching a high of USD 87.75/MT first week of Feb’17.
South African coal prices remained volatile since the beginning of Jan’17. While coal index price rose sharply by USD 3-4/MT to USD 86.7/MT in Week 1, it started falling and reached at the level of USD 82.45/MT in Week 2.
However, the RB1 price remained stable at around USD 85/MT during the third week but again begun to rise near the end of Jan’17.
Demand for coal from the European nations increases sharply in the winter season, pushing up the prices as a result during that period. Since all coal requirements for the winter months were concluded during the Dec-Jan period, the corresponding import offers pertaining to the Jan-Feb’17 loading also went up subsequently. However, the offers have gone down as demand slowed due to the winter season coming to an end.
South African RB1 (6000 NAR) was accessed at USD 83/MT, FoB for Mar’17 loadings. While 5500 NAR and 4800 NAR were accessed at USD 71/ MT and USD 53/ MT, FoB respectively.
Indian Market Scenario:
Indian demand for South African coal has fallen as manufacturers are depending on domestic coal supply for operating their plants. Coal imports from South Africa have fallen on the monthly basis by 30% to 1.96 MnT in Jan’17. With Indian Steel Industry being dull, demand for South African coal is expected to remain muted in the near future.
South African coal prices have been declining continuously since Feb’17. 5500 NAR is offered at USD 79/MT, CFR East Coast. While low CV 4800 NAR is offered at USD 61/ MT, CFR East coast. Premium Grade RB1 (6000 NAR) coal have not been traded in East Coast.
At West Coast, 6000 NAR coal is offered at USD 90/MT, CFR Kandla port. 5500 NAR coal was offered at USD 82-82/MT, CFR Kandla port. While low CV 4800 Nar coal was offered at USD 65/MT, CFR Kandla port.
Source: SteelMint Research
Stock and Sales Offers:
Traders are offering 5500 NAR coal at INR 6400/MT, CFR east Coast (all duties and clearances included). While low CV 4800 NAR coal is available at INR 5200/MT, CFR East Coast. Around 15,000-16,000 MT coal is available at East coast ports.
Stock and sales offer at West coast ports Mangalore and Jaigarh for 5500 NAR coal were offered at INR 6050/ MT last week.
Leave a Reply