South African coal prices have remained firm, as the Index price was bounded in the range of USD 89-91/MT this week.
Coal buying from the European countries was slower than expected ahead of the winter season, but India and Pakistan continued their purchasing of South African coal.
South African 5500 NAR coal was available at a discount of USD 10-10.50/MT this week, while 4800 NAR coal was available at a discount of USD 16-16.50/MT to 6000 NAR coal. Coal index API-4 was assessed USD 91.05 yesterday.
Market participants have reported more demand for 5500 NAR coal in the Indian market than that for 4800 NAR, as price of 5500 NAR have came down from the monthly high of USD 78/MT in Sep’17.
Current offer for 5500 NAR coal was heard USD 74/MT, FoB Richards Bay and for 4800 NAR coal it was assessed at USD 60/MT, FoB Richards Bay.
South African coal had been majorly preferred by Sponge Iron manufacturers in India. However, owing to the decline in coal stocks at power plants, many power utilities have also bought South African coal for their operations. Given the robust demand for power and the subsequent low stock at power plants, growth in imports of South African coal is expected to continue.
Offers for Indian buyers were heard at USD 87/MT, CFR India for 5500 NAR coal. 4800 NAR coal was prices at USD 73-74/MT, CFR India.
An Indian trader had quoted stock and Sale offer for 5500 NAR coal at INR 6600/MT (GST + TCS to be added) in Vizag port, while offer for 4800 NAR coal was INR 5700/MT.
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