Indian Coal imports rising consistently owing to stagnant Coal production of Coal India, a state- owned and largest miner in the country.
Coal imports from South Africa have increased owing to rise in demand from Sponge iron manufacturers across eastern and southern region.
Current offers for South African Coal of grade RB-2 (6,000 GCV), having moisture content of 8%, is at about USD 80-81/MT CIF Krishnapatnam port, on High Sea Sales (HSS) basis. Market participants mentioned that delivery will be made in the month of July.
“A capsize vessel from South Africa’s Richard bay is expected to arrive at Krishnapatnam port in the month of July. Current offers are being made at about USD 80-81/MT CIF, based on quantity. Landed cost including customs duty and handling charges at port, it would cost us at around INR 5,600-5,700/MT on Ex-Plot basis,” said a Sponge iron manufacturer in Karnataka, who has received the offer.
Coal traders & importers highlighted that Sponge manufacturers are gradually increasing their South African Coal consumption owing to quality and delivery issues with CIL.
“We are bound to use imported Coal as we are facing quality issues with CIL, also they reduced Coal linkage to Sponge units,” said a Sponge manufacturer based in West Bengal.
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