South African coal prices which earlier remained low for the most period of the previous month, had been pulled up by strong Australian Non-Coking Coal prices and Indonesian Coal Prices which remained stable on the higher side.
However, South African Coal Prices have remained stable this week. Currently, 6000 NAR coal was assessed at USD 79/MT, FoB Richards Bay, 5500 NAR material was assessed at USD 69-70/MT, FoB Richards Bay this week.
South African Coal Demand:
Steady demand for South African 4800 NAR coal prevailed in the market. Low CV 4800 NAR, which is equivalent to Indonesian 5000 GAR coal, was preferred by the buyers in comparison to the costly Indonesian Coal resulting in supply shortage of the material.
Hence, Discount for 4800 NAR coal was reduced from USD 19/MT to USD 16/MT while 5500 NAR was offered at a discount of USD 8.5-9/MT to 6000 NAR coal.
Indian Market Scenario:
Indian Buyers looked to stock coal before monsoon period and were active in the market. As evident from the fact that South African coal Exports into India rose 56% M-o-M to 2.87 MnT in Mar’17 compared with 1.26 MnT in Feb’17.
RB2 (5500 NAR) was assessed at USD 80/MT, CFR East Coast India. While low CV 4800 NAR coal was available at USD 67/MT, CFR East Coast India.
Stock and Sale Offer:
Stock and sale offer for 5500 GAR coal was assessed at INR 6100/MT in Krishnapatnam port (VAT/CST and TCS charges to be included).
Low CV 4800 GAR material was offered at INR 4800/MT in Vizag port, INR 5250/MT in Krishnapatnam port and INR 5700/MT in Haldia port (VAT/CST and TCS charges to be included).
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