South African coal prices have remained stable at higher end this week. However, strong paper market would cause coal buying at higher cost as index price have surged to USD 89.85 for Sep’17 loading.
South African Index API-4 was assessed at USD 86.90 for Aug’17, however strong physical trading in paper market coupled with coal supply tightness have supported index price for Sep’17 loading.
Offer for South African 5500 NAR coal were heard at a discount of USD 6-7/MT to 6000 NAR coal. While 4800 NAR coal was offered at discount of USD 14/MT to 6000 NAR coal, against bid of USD 16/MT. 6000 NAR coal was assessed at USD 86/MT, FoB Richards Bay this week.
Spot price for 5500 NAR coal was assessed USD 72-73/MT, FoB Richards Bay. While, price of South African 4800 NAR coal was heard at USD 58/MT, FoB Richards Bay.
Indian Market Scenario:
South African coal has been flowing steadily into Indian market; however demand for imported coal has fallen this year.
According to data maintained by CoalMint Research, South African non-coking coal import into the country has fell 11% M-o-M to 2,922,460 MT in Jul’17, compared with 3,272,990 MT in Jun’17. Also, the import in Jul’17 was 4% lower on the year compared with 3,030,140 MT in Jul’16.
Demand from Cement Industry has also been lowered as they have started using Pet Coke for their operations. Moreover, in order to ensure fuel security for cement sector, CIL has recently announced the first phase of Tranche-III coal linkage auction exclusively for cement sub-sector which will start from 31 Aug’17.
Offer for 5500 NAR coal was assessed at USD 84/MT, CFR India, while 4800 NAR coal was heard USD 58/MT,CFR India.
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