South African coal prices which remained stable during the month of Apr’17 is starting to tumble amid low demand. API4 index which was hovering in the range of USD 79-80 for most of the period of last month, has fallen to USD 75 this week.
South African coal prices depend on the movement and discounts on API4 index. When the index price was in the range of USD 82, discounts were higher. With the index price falling this week discounts have also reduced.
Discounts for 5500 NAR coal is offered at USD 8/MT to 6000 NAR coal against market bids of USD 9-9.5/MT, while 4800 is offered at a discount of USD 14/MT against bids of USD 16-17/MT.
Fall in the index has caused discounts for 4800 NAR coal falling from USD 18/MT to USD 14/MT this week. Also, discounts for RB2 5500 NAR coal has reduced to USD 8/MT from USD 9/MT.
Coal Price for RB1 6000 NAR was assessed at USD 75-76/MT, FoB Richard’s Bay. Market Price for 5500 NAR was USD 62-63/MT, FoB Richards Bay while that for 4800 NAR stood at USD 49/MT, FoB Richards Bay for May Loadings.
Indian Market Scenario:
India Demand for South African Coal has decreased, with two of its major users Cement and Steel industry lowering their coal imports.
Cement Industry which also used South African coal along with Pet coke, is currently only relying on Pet Coke. Moreover, the Steel Industry also not doing well is adding further pressure on South African coal prices. Indian buyers are buying hand-to-mouth, specially the sponge iron manufacturers, otherwise opting cheap domestic coal supplied by CIL.
RB2 coal is offered for sale at USD 75/MT, CFR India against bid offer of USD 72-73/MT. While, 4800 NAR coal is offered at USD 61/MT, CFR India against bids of USD 58/MT.
Stock and Sale Offers:
Stock and Sale offer for RB2 5500 NAR coal was INR 5800/MT and offer for 4800 NAR coal was INR 5100/MT at Krishnapatnam port(VAT/CST and TCS charges to be included).
4800 NAR coal was available for sale at Vizag port at INR 4900/MT (VAT/CST and TCS charges to be included).
Leave a Reply