South African Coal Offers Volatile Amid Slow Buying

South African Coal index inched up marginally yesterday amid slow buying inquiries from India.

Retreated South African coal offers witnessed a marginal hike by USD 1-1.5/MT, FoB in current week for Dec’16 loadings. While, South African coal index is reflecting volatility in prices on regular basis which left buyer in dilemma.

At present market demand is more or less quiet for Dec’16 deals. Besides, Indian buyers are not keen to purchase on the grounds of demonetization effect in the country.

[su_quote]Mentioned by an Indian importer, “the number of enquiries from the buyer’s side have fallen sharply as they are not willing to take position in the risk market on the back of cash crunch. It is expected that demand may normalize in coming month.” [/su_quote]

South African 6000 NAR coal is being offered at USD 81/MT, FoB Dec’16 loadings. While 5500 NAR and 4800 NAR coal is offering at USD 69-70/MT and 54/MT, FoB respectively.

“One West Coast Based trader highlighted, South African coal are falling slowly but demand is not as strong as earlier in India. On the current trade outlook, both buyers and traders are directionless.“

In India, South African RB2 coal (5500 NAR) is being offered at USD 79-80/MT CFR Mangalore and Gangavaram for Dec’16 loadings which is hovering at USD 78/MT, FoB for Jan’17 bookings. Meanwhile, low GCV RB3 is being offered at USD 65/MT CFR Gangavaram Port for Dec’16 loading.

At East Coast ports, ready to sell material of South African coal has increased owing to volatile global offers and lack of cash in the domestic market.

Few trader are offering 5500 NAR coal at INR 6,300-6,400/MT CFR Dhamra, Paradip and Gangavaram ports (all duties and clearance included). While 4800 NAR is offering at INR 5,300/MT at the same port, the offers can vary INR 100-200/MT port to port owing to difference in port handling charges.”