South African Coal Offers Stable at USD 47-48/MT CFR India

South African 5500 NAR thermal coal offers are stable this week at USD 41-42/MT, FoB from Richards Bay for Feb’16 deliveries. But, Indian buyers are seeking lowest offers owing to devalued Rupee at INR 67.9 per USD.

South African RB2 coal offers are stable in this week at USD 47-48/MT, CFR India. The biggest market for South African coal, India is preferring to purchase South African grade aggressively rather than Indonesian and other grades. While, India’s CFR offers are falling constantly owing to low sea freight rates.

On the other hand, South African 6000 NAR coal offers rise marginally at USD 52-53/MT, FoB this week owing to low availability for current bookings. Meanwhile, low GCV 4800 NAR is traded at USD 37-38/MT, CFR West Coast ports.

[su_quote]It is heard from an Indian trader, “At the current movement, India seems well supplied destination for South African grades as the country’s monthly import is constant. Also, the nation looks well focused on price comparative analysis globally.”[/su_quote]

He also added, we are offering 2 capsize (1.5 MnT each) vessel of South African 5500 NAR coal at USD 47/MT and USD 48/MT at Gangavaram and Dhamra port respectively. Vessels are expected to reach in the mid of Feb’16.

Stock and sell 5500 NAR coal is almost sold out by Indian traders and presently very less quantities are available at Indian ports. At present, the material is offered at INR 4,150/MT loaded on truck at Paradip (all duties and clearance included, VAT & CST will be added further).

South African coal import to India

However, India remains still a positive indicator for imported South African coal demand in this year 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
Quantity in MnT