Coal prices have abruptly increased because of the violent protest, according to the sources.
Protests demanding jobs and business opportunity are affecting South African coal market. Rail operations that transport coal to Richards Bay Coal terminal (RBCT) has been suspended as a result of the protests.
The Rail line runs a distance of about 580km from Mpumalanga to Richards Bay where coal is loaded at the Richards Bay Coal Terminal (RBCT).
South African coal exports had been earlier affected by supply tightness and congestion at the port, now the recent protest has created chaos in the coal market.
South African Index (API 4) has reached the highest levels since Apr’17, was assessed at USD 84.35 yesterday. While, Spot Offers for 5500 NAR coal was heard at USD 72/MT, FoB Richards Bay.
Significance of RBCT:
Richards Bay Coal Terminal (RBCT) is one of the leading coal export terminals in the world, with a design capacity of 91 MnT per annum.
About 30.85 MnT coal has been exported from RBCT during Jan’17-May’17, data maintained by CoalMint Research shows.
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