South African thermal coal export prices continued to face pressure from key export market India, with most end-user buyers exhibiting limited spot demand.
The Indian import demand for South African thermal coal was still observed to be scanty, as most buyers remained on the sidelines expecting further price corrections, while also keeping a close watch for fresh Chinese purchases to understand future market direction.
Similarly, lower demand was also seen from Pakistan — another key export market for the higher grades of South African thermal coal.
The ongoing drawdown of thermal coal prices in the global seaborne markets have already been exerting enormous pressure, in the midst of intensifying competition between multiple originating countries, particularly Australia.
Richards Bay discounts
Discounts for South African coal from the financial 6,000 kcal/kg NAR market to export grades of physical coal are heard at around USD 8.00-9.00/MT for the 5,500 kcal/kg NAR grade.
Discount for the 4,800 NAR grade is assessed at USD 12.50/MT.
Dry Bulk Freight Assessments
Panamax dry-bulk shipping freight rates from the Richards Bay Coal Terminal (RBCT) to the East and West Coasts of India are USD 17.35/MT and USD 16.95/MT respectively.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 59.25/MT FOB Richards Bay.
RB2 (5,500 kcal/kg NAR) coal is assessed at around USD 47.44/MT FOB Richards Bay.
RB3 (4,800 kcal/kg NAR) coal is assessed at around USD 38.20/MT FOB Richards Bay.
For Indian buyers, the above offers amount to USD 76.40, 64.59 and 55.35/MT respectively, considering an average freight rate of USD 17.28/MT for delivery by Panamax vessel class.
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