South African Thermal Coal offers are firm for Aug’16 loadings at USD 63/MT FoB, higher pricing lead to slow buying interest in the global market.
Owing to limited Indian demand along with higher index has resulted in falling number of potential buyers in the market for South African grade coal. Only few small positions seen in the market for current bookings. At present, supply tightness of Colombian coal also providing some support to South African coal index.
Stronger pricing for Richards Bay coal is leading Indian buyers to take cautious step in current trading. Although, global buyers are in wait-an-watch situation as in the current volatile market it’s better to hold a bit for further bookings.
South African 5500 coal offers for Aug’16 loadings heard at USD 57-58/MT CIF East Coast ports. But buyer’s consideration come up at USD 54-55/MT CIF, India.
Meanwhile, 6000 NAR is being offered at USD 69-70/MT CFR India. Low CV South African material 4800 NAR is available at USD 45-46/MT CIF India for Aug’16 shipments.
Mentioned by a West Coast Based Indian trader, “Currently on the grounds of slowing sponge and cement industry in India coupled with ongoing monsoon, there is no such demand reflected in the market, while buyer are not willing to take position over higher offers.”
Also added, South African Coal offers may fall during Sep-Oct as expected to correct shortly in the 2nd half of the year.
At Indian ports, very less material is available in stock and sale. Traders are offering 5500 NAR coal at INR 4,650/MT at Mangalore port. Whilst, the same grade material is being offered at INR 4,700-4,800/MT (all duties and clearance included, taxes will be added further) at all Indian ports.
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