South African coal prices have continued to stay at higher end as a result of the active buying from Indian Sponge manufacturers. However, Coal Index has remained almost constant from the previous week’s level of USD 91.
South African coal index API-4 assessed USD 91.05 for Oct’17, witnessed slight uptick to USD 92.5 for Nov’17 loading.
An Indian Trader had commented that Coal demand will increase in the country, as the rainy season has ended, and he expects South African coal index price to be bounded in the range of USD 91-95 till the end of the year.
5500 NAR coal was available at a discount of USD 9-9.5/MT to index price, against buyers expectation of USD 10.50-11/MT. 4800 NAR coal was offered at a discount of USD 14-14.5/MT against bid of USD 16/MT to index price.
Current Offer for 5500 NAR coal was 75-76/MT, FoB Richards Bay, and for 4800 NAR it was heard at USD 61/MT, FoB Richards Bay.
4800 NAR coal was more buyable in comparison with Indonesian 5000 GAR coal (having calorific value almost similar to South African 4800 NAR coal) which was assessed at USD 67/MT, FoB Kalimantan. However 4800 NAR coal availability was limited in the market.
Indian Market Scenario:
In the period of low coal stock available to power plants, Mahanadi Coalfields Ltd (MCL) has decided to cut coal supplies to Non-power sector for the second successive month in Nov’17.
The company has instructed its Non-power consumers to apply for 80% of their monthly scheduled quantity in order to facilitate augmentation of coal supply to power houses.
MCL has many Sponge iron and Steel plants consumers under their belt lifting coal through FSA, LOA and Linkage route, if their coal needs are not met they will be forced to meet demand through imported coal.
Offer for Indian buyers was USD 88-89/MT, CFR India for 5500 NAR coal, while 4800 NAR coal was priced USD 75-76/MT, CFR India.
Stock and Sale offer was quoted INR 6600/MT (+GST) for 5500 NAR coal at Mundra port by a trader, who expects demand for South African coal to pick up once Brick industry resumes their operation.
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