South African thermal coal prices have decreased marginally this week, notwithstanding their gradual recovery over the past couple of weeks, having been supported by their better price realizations as compared to similar calorific value coal grades exported from alternate originating countries, especially Indonesia.
Accordingly, Asian buyers – particularly India amongst others – have been exhibiting healthy growth in demand for South African 4,800-5,500 kcal/kg NAR coal grades.
Nevertheless, a weaker priced 6,000 kcal/kg NAR in the financial market has been negatively impacting the overall spot pricings of the commonly traded grades of physical coal in the South African export market.
Meanwhile, the average discount levels for South African 5,500 and 4,800 kcal/kg NAR coals have remained unchanged from the prevalent rates of last week at around USD 7 and 14/MT respectively.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 70.60/MT FOB Richards Bay.
RB2 (5,500 kcal/kg NAR) coal is assessed in the range of USD 58.30-60.13/MT FOB Richards Bay.
RB3 (4,800 kcal/kg NAR) coal is assessed in the range of USD 45.28-46.88/MT FOB Richards Bay.
For Indian buyers, the above offers amount to USD 83.60, 72.22 and 59.08/MT respectively, after charging an average freight rate of USD 13/MT for Panamax vessel class.
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