South Africa: Derailment at Transnet’s Dassiehoogte station to push coal prices higher

As many as 31 wagons of a train loaded with coal were derailed at Dassiehoogte in the Eastern Cape region of South Africa on 3 Jul’21 resulting in closure of two rail lines with immediate effect, as per latest updates. Although the Eastern Cape is not a major coal exporting region compared to Mpumalanga province, the mishap is likely to push RB1(6,000 NAR) grade coal prices higher in the coming days, with the country already facing high-CV coal supply issues since the past few months, market participants informed.