South African coal market is continue to be volatile. Offers had declined in earlier April but now hovering in upward direction for current loading. Besides, current offers fronting heavy negotiations.
South African coal index has bounced up marginally in this week, which was reflecting a marginal fall in early Apr’16. At present, South African coal offers are replicating upward movement. 5500 NAR, sponge grade coal, largely traded to India, is being offered at USD 50-51/MT, CFR East Coast ports for May’16 loading.
A trader is offering a Panamax vessel of 6000 NAR at USD 60-61/MT, CFR Vizag port for May’16 shipments. Whilst, offers for Haldia Port is comparatively high by around USD 2-3/MT for the same.
Another trader based at East Coast is offering 5500 and 4800 NAR coal at USD 51/MT and USD 40/MT respectively at Paradip Port. However, buyers’ expectation for 5500 NAR is lying at USD 48/MT, CFR India.
It has come on light that Indian buyers are currently taking position for May and June shipments to secure stock before monsoon. Indian demand is expected to edge up in this summer as demand for electricity is projected to high in the period.
A market participant mentioned that offers for old ready to sell 5500 NAR material is available at INR 4,100-4,300/MT at Vizag Port (all duties and clearance included, taxes will be added further).
Vessel freight rates
Freight for shipping coal in Panamax vessel from South Africa to India is assessed at USD 6.5-&/MT for East and West Coast ports. Meanwhile, freight for all size of bulk vessels have been supported now as driven by increased crude oil market.
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