South African Thermal coal Index (API4) hit fresh high today. While Oct’16 index reaches at the level of USD 75/MT, FoB Richards Bay.
After remarkable growth in South African coal prices which was recorded at 21 months highest last week , now prices are noted at fresh high and touched 28 month highest (since Jun’14) this week. South African coal index (Oct’16 shipments) rose by about 10-12% to USD 75/MT, FOB compared to last month.
South African 5500 NAR (RB2) coal prices, mostly traded in India rose again by USD 3-4/MT, FoB for Oct’16 deals, after witnessed sharp growth in Sep’16. Currently, it is hovering at the range of about USD 58-59/MT, FoB.
In India, South African 5500 NAR coal offers heard at USD 67/MT, CFR at West Coast ports. While, low CV South African RB3 (4800 NAR) is available at USD 54-55/MT, CFR India.
[su_quote]Mentioned by a coal importer West Coast India, “In thermal coal index market, South African and Australian coal prices moves counterpart, since couple of months there have been a huge gap witnessed between two as Australian prices moved up faster than South African coal. In addition, Rising Chinese demand for Australian thermal coal also deriving South African coal index up.”[/su_quote]
Stock and Sale Offers at Ports
Owing to increased global offers, Indian buyers are keen to purchase stock material from different ports. India’s stock & sale coal prices have also turned up sharply on the wake of high imported offers. Besides, Indian East Coast based traders are eyeing on profit margins and holding South African coal stock at ports as they are looking to sell material at higher prices.
Stock and sell material offers for RB2 is been offered by an Indian trader at INR 5,500/MT at Paradip Port. Whereas, at Vizag and Gangavaram ports, same grade material is available at INR 5,200-5,300/MT loaded on truck basis (all duties and clearance included, VAT & CST will be added further). Very less quantity of 4800 NAR is been offered at INR 4,800/MT at Paradip Port.
Indian Imports
As per SteelMint data analysis, India have been importing at an average about 3.7 MnT coal from South Africa per month since Feb’16. In Sep’16, monthly imports have increased by 9% to 2.5 MnT compared to Aug’16. It is also noted that Indian imports is falling down on the back of higher global offers.
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