Ongoing congestion at the Richards Bay port is supporting South African coal prices, as prices index API-4 has gone up USD 2-3/MT from the previous week.
Bad weather conditions and supply issue at Richards Bay port had build up prospect of possible Force Majeure declaration. However, a shipping company in talks with CoalMint has informed that there was no Force Majeure declared from RBCT officials.
Also adding that the number of vessels waiting at anchorage was due to bad weather conditions as a result of strong winds, high swells experienced in the past. He has indicated that currently vessels are being berthed normal as per the Terminal daily ship loading plan.
South African 5500 NAR coal was offered at a discount of USD 8-9/MT to API-4 index, against bids at a discount of USD 11-12/MT. South African 4800 NAR coal was offered at discount of USD 13-14/MT.
5500 NAR coal prices was assessed at USD 79/MT, FoB Richards Bay, while 4800 NAR coal price was heard at USD 64-65/MT, FoB Richards Bay.
Indian Market Scenario:
Of late Indian demand had revived for South African Coal, as Court had banned the usage of pet coke in four states and the coal availability to Non power had remained scared in domestic market.
According to the Weekly Coal Import data maintained with CoalMint Research, South African coal shipment o Indian had rose to 1.17 MnT during Week 47(19-25 Nov’17) against 0.49 MnT in Week 46.
However, the recent surge in coal prices has turned buyers mute. Currently, South African coal offers of 5500 NAR coal was assessed at USD 92/MT,CFR India. While 4800 NAR coal was offered at USD 77-78/MT, CFR India.
The congestion at RBCT is likely to be resolved soon, but it may affect coal shipments for Dec’17. In the meantime, buyers could turn towards Stock and Sale market to meet their demands.
An Indian Trader has quoted Stock and Sale offer for 5500 Nar coal at INR 7000/MT(excluding GST) , 4800 Nar coal was quoted at INR 6000/MT(excluding GST) at Krishnapatnam port.
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