Richards Bay Coal Terminal (RBCT) is the premium coal terminal for handling majority of coal exports in South Africa. According to the vessel line-up data maintained by SteelMint Research, RBCT’s total coal export was 63.8 MnT during Jan’17-Oct’17.
Indian coal shipment from RBCT was recorded at 2.8 MnT in Oct’17. Given the robust demand from Sponge Iron sector, it may come as a bad news for Indian buyers that Force Majeure has been declared at RBCT.
According to the market participants, SteelMint has learnt that the low stock level available at RBCT following damages done to the rail-line had resulted in the declaration of Force Majeure.
The Rail-line which moves coal to the terminal was damaged after a violent storm had hit KwaZulu-Natal (the place where major of South African coal is supplied to RBCT) in Oct’17. Till that time, ample of coal availability had supported miner’s obligation to supply coal to their consumers.
However, after the rail-lines were disturbed, Coal movements were stopped and stock at the port started to fall. Now, the existing stock has reached at such a level that had forced officials to declare Force Majeure.
With an annual coal handling capacity of 91 MnT, RBCT is the premium port of South Africa. Accordingly the consequence of Force Majeure, would eventually affect South African coal prices.
Coal Index API-4 was asses USD 92.6 yesterday, and is like to go up until the situation of Force Majeure is cleared. Any further development in the price movement would be notified subsequently.
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