South African coal offers range bound at USD 48-49/MT, CFR India owing to lack of cargo availability for Feb’16 shipments. On the other side, heavy negotiations hinders trade.
South African 5500 NAR Coal preferred by sponge utilities in India is being offered at the same level because of limited buying interest from India. Weak performing sponge industry and constant devaluating INR against USD seems unfavourable for strong bid in the coal market.
Earlier some demand have been witnessed in the market but only few deals have closed on the grounds of heavy negotiations at the offer prices.
Highlighted by an Indian trader, “Current South African coal trade market is struggling with heavy negotiations from Indian buyers as they are asking for addition discount of USD 3-4/MT. We are offering a Panamax vessel of 5500 NAR (RB2) at USD 48/MT but market expectations lying at USD 45-46/MT, CFR India for Mar’16 end delivery.”
At present South African RB2 offers assessed at USD 48/MT CFR India for Mar’16 delivery. Meanwhile South African 6000 NAR is trading at USD 52-53/MT, FoB Richards Bay for Feb’16 loading.
South African coal import to India
As of now, India remained a positive indicator for imported South African coal which may continue in 2016 also as it’s more competitive for Indonesian grade. Nation’s import from South Africa increased by about 42% to 34.8 MnT compared to 2014 imports.
Source: SteelMint
Prices in USD/MT
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