Imported Thermal coal offers rally continue despite poor Indian buying sentiments owing to ongoing monsoon.
India, one of the largest taker of South African thermal coal is rarely seen participating on South African coal cargo deals as it is highly driven by cheaper alternatives and seasonal affect.
As heard by an India trader, Sep’16 loading cargo of South African 5500 NAR coal is offering at USD 61-62/MT, CFR at West Coast ports. While, offers for 4800 NAR and 6000 is heard at USD 52/MT and USD 69-70/MT, CFR respectively.
At present, Indian buyers are reluctant to accept the increased offers amid low demand in monsoon. Also, cheaper domestic coal seems more viable to Indian users. Meanwhile, Indian utilities are at wait and watch mode as they expect prices to correct shortly. Besides, India’s imports of South African coal have fallen by 12% in Jul’16 compared with Jun’16.
One of the trader mentioned, “Indian utilities preferred South African coal for blending with domestic coal. But increased imported offers deters for aggressive buying. In addition, Indian buyers prefer to opt for High CV Indonesian cargoes instead of South African pricey material.”
Stock and Sale offers at Ports
In India, ports having sufficient coal stock level. As international coal prices constantly moving up, buyer are preferring comparative economical coal from port inventory rather than fresh material.
• South African 6000 NAR coal ready to sale material is being offered at INR 5,700/MT at Kandla port.
• About 70,000 MT South African 5500 NAR coal is offering at INR 5,000/MT at Mangalore Port (taxes will be added further).
• Low CV South African 4800 NAR is available at Mangalore port at INR 4,400/MT (all duties and clearance included, VAT & CST will be added further).
Leave a Reply