South African thermal coal offers from Richards Bay have touched the highest level this week. Also, index for 6000 NAR reached today at USD 53.8/MT, FoB.
South African coal prices have climbed up by USD 1/MT to USD 53.8/MT, FoB for current loading, hitting highest level in the month. While, the material is available at USD 55/MT, FoB Richards Bay for June loading.
South African coal offers to India have been increasing since a couple of months owing to rise in seasonal demand. This in turn hold the offers at firm level and increased sea freight rates, which is also driven by rising crude oil prices globally.
Current CFR offers (5500 NAR) to India are assessed at USD 51-53/MT. There is also an offer heard by one of the biggest coal trading firms in India, at USD 52-53/MT, CFR Dhamra port for May’16 loading.
A trader reported better demand in China and heavy rainfall in Indonesia that have kept thermal coal supply tight, lending some support to South African coal market.
South African 5500 NAR coal, mostly preferred by Indian sponge utilities, has been witnessed at upper side since a last couple of months. Current offers are assessed at USD 51-52/MT at Gangavaram for current loading. While, low GCV South African 4800 NAR is being offered at USD 42-43/MT, CFR India.
It is reported by an East Coast based trader that offers for 5500 NAR are heard at USD 55/MT, CFR Haldia for current loading. Whilst, Vizag port offers are assessed at USD 51-52/MT.
A trader mentioned that ready to sell material of 5500 NAR coal is available at INR 4,600/MT at Paradip Port, loaded on trucks. Whilst, the same grade material is being offered at INR 4,400/MT (all duties and clearance included, taxes will be added further) at Krishnapatnam Port.
Vessel freight rates
Sea freight rates have gone up now a days. Also, freight for shipping coal in Panamax vessel from South Africa to India is assessed at USD 8-9/MT for East Coast ports.
Meanwhile, freight for all size of bulk vessels is supportive now; driven by increased crude oil market and hovering in the range of USD 6-10/MT.
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