South African Thermal Coal index touched to the level of USD 58.9/MT, FoB today for Jun’16 loadings; offers are highest since Aug’15.
For the first time in the last one year, South African coal index have touched the highest level today as offers have been rising consecutively from past few months. Current offers have registered a growth of 8% compared to last week as 6000 NAR spot offers reached at USD 58.9/MT, FoB for Jun’16 loadings.
With forward offers also trending upside, Jul ’16 shipments are bit high at USD 61/MT, FoB at Richards Bay. Besides, prices have reflected a hike of 8% on weekly basis which was hovering at USD 55.5/MT, FoB last week.
5500 NAR coal is being offered at USD 55-56/MT, CFR at Indian ports for Jun’16 loading. While, South African 6000 NAR offers heard at USD 68-69/MT, CFR Indian ports.
Source: SteelMint
Prices in USD/MT
[su_quote]An East Coast based trader highlighted, “South African coal offers trending high on the grounds of supply tightness for Jul’16 and Aug’16 shipments. We are offering 5500 NAR coal in Panamax at USD 56/MT, CFR Paradip and Vizag port for early Jul’16 deliveries. While, material with high CV 6000 NAR is been offered at USD 68-69/MT, CFR East Coast ports.”[/su_quote]
He also added that Indian buying is slowing down as most of the end users have enough stock for monsoon. However, low CV South African material 4800 NAR is available at USD 48/MT, CFR Indian ports.
Another source commented that buying sentiment in the market is not at the same level. Indian utilities are asking for more discount as offer are too high to take any position for prompt bookings. Also they have market anticipation that FoB prices will touch USD 65/MT, till the end of the month.
Source: SteelMint
Prices in USD/MT
On the present scenario, coal stock position at RBCT reached at lowest level and only 2-3 MnT stock left as of now. On the other side port is delaying its maintenance work which scheduled for May ideally, Although, falling European ports coal stock level (a second largest buyers of South African grade) and strong commodity market (Crude Oil and Gas) largely driving South African coal index to maintain its firm position.
Particularly, South African coal market are highly driven by other factors rather than buying demand in the global market which seems more or less steady presently.
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 7.5-8.5/MT for East Coast ports.
Meanwhile, vessels freight rates are driven by increased crude oil market, which inched up to USD 50/barrel on for the first time in 7 months. All size of bulk vessel freights are hovering in the range of USD 6-12/MT.
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