South African coal prices have remained almost unchanged from the previous week, but were still competitive due to the strong paper market which has kept index price marginally above USD 90 mark this week.
South African index price was assessed at USD 90.40 yesterday, and in the absence of any significant change in discount offers, spot coal offers were unaltered.
Spot offer for 5500 NAR coal was heard at USD 73-74/MT, FoB Richards Bay. While offer for 4800 NAR coal was assessed at USD 59-60/MT, FoB Richards Bay.
While, for Indian buyers, these offer translate into USD 84-85/MT, CFR India for 5500 NAR coal and for 4800 NAR coal price were quoted at USD 71-72/MT, CFR India.
Indian Market Scenario:
Demand for coal is slowly gathering pace as the buyers look to rebuild stockpile for stock and sale at port as the monsoon draws to a close, however high prices have restricted buyers to make any firm deal.
An Indian trader has shared fair stock and sale offer for 5500 NAR coal at INR 5900/MT (GST + Compensation cess of INR 400/MT to be added) available in Mangalore port.
Industrial buyers such as cement, sponge iron and paper companies which tend to buy South African coal are often affected by the higher coal prices. In order to reduce dependency on imported coal, Indian Ministry of Coal (MoC) has commenced the third tranche of Coal Linkage auction for non-power sector.
The first phase of auction scheduled specially for Cement sector offering 0.55 MnT coal has been completed on 1 Sep’17. While the second phase of auction for other sub-sectors offering 3.245 MnT coal is scheduled later this month.
MOC has earlier scheduled the auction for others sub-sector on 5, 6, 7 and 9th Sep’17, but now have changed these dates to 14, 15, 16 and 18th Sep’17. Scheme related documents are available at MSCT website. While the detailed source-wise coal offered quantity is provided below.
Coal Linkage would help in ensuring uninterrupted coal supply that too at lower rates.
Source-wise Offer for Tranche-III Coal Linkage Auction for Others Sub-sector
| Auction Date | Subsidiary | Source | Mode | Grade | Size | Quantity | Notified Price |
| 14-Sep | SECL | Amadand OC | Road | G6 | (-) 250 mm ROM | 150000 | 2280 |
| 14-Sep | MCL | Samleshwari OCP, IB Field | Road | G13 | (-) 100 mm | 50000 | 860 |
| 14-Sep | WCL | Umrer OC # | Road | G8 | Steam | 25000 | 2245 |
| 15-Sep | SECL | Bangwar UG | Road | G7 | Steam | 30000 | 2100 |
| 15-Sep | CCL | Amrapali OC | Road | G11 | ROM | 250000 | 970 |
| 15-Sep | WCL | Ballarpur Siding | Rail | G10 | CRUROM (-100 mm) | 60000 | 1420 |
| 16-Sep | NCL | Block-B/ Spur II W/w | Rail | G8 | (-) 100 mm/(-) 250 mm | 100000 | 1700 |
| 16-Sep | WCL | Mana Incline | Road | G9 | Steam | 10000 | 1760 |
| 16-Sep | SECL | Rajendra UG | Road | G6 | Slack | 30000 | 2300 |
| 18-Sep | CCL | Magadh OC | Road | G11 | ROM | 2500000 | 970 |
| 18-Sep | WCL | Nandgaon Incline @ | Road | G8 | Steam | 10000 | 2250 |
| 18-Sep | SECL | Vindhya UG | Road | G7 | Steam | 30000 | 2100 |
#As per extant practice in WCL, Beneficiation charges of Rs. 90 per tonne has been added to the notified price for arriving at the reserve price of coal from these sources
@ Commitment charges of Rs. 90 has been added to the notified price of coal
Source : Ministry of Coal
Quantity in MT
Price in INR/MT
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