South African 6000 NAR coal index rise marginally by about USD 1-1.5/MT yesterday owing to lack of material availability for current bookings.
Since the beginning of 2016, South African coal has been trading on marginal price fluctuations. In the month of Jan’16, South African RB1 was offered in the range of USD 49-51/MT, FoB which is currently offered at USD 52/MT, FoB for Mar’16 bookings.
South African 5500 NAR (RB2), mostly traded by Indian sponge and cement utilities, has also registered a marginal growth amid lack of material availability for current bookings and rise in sea freight rates. Contrastingly, Indian buyers are still looking for a discount of around USD 3-4/MT to book material in Apr’16.
South African RB2 is being offered at USD 47-48/MT and USD 46-47/MT, CFR East Coast of India for Mar’16 and Apr’16 loading respectively. Meanwhile, low GCV South African 4500 NAR is being offered at USD 39-40/MT, CFR West Coast.
One West Coast based trader is offering RB2 25,000 MT material at USD 50/MT, CFR Mangalore port; the vessel (Supramax) expected to reach on 26 Feb’16 on discharge. Meanwhile, 70,000 MT of RB1, which was booked by sponge and cement manufacturers, was closed at USD 56-57/MT, CFR Kandla.
He also added, a Panamax vessel of South African RB3 is expected to reach on 10 Mar’16 at Kandla port. The material will be offered at USD 40/MT, CFR.
[su_pullquote align=”right”]Source said, “There have a lack of material availability in the market for South African coal for Mar’16 bookings, which is reflecting a support towards price rise. However, India is currently getting more competitive offers from Colombian traders for High GCV thermal coal.”[/su_pullquote]
Heard from West Coast based Indian trader, “few South African miners are keeping their price on upper side to get market stability, now even though same offers have not heard anywhere in the market. “
Stock and sell material offers for 5500 NAR is not available by Indian traders. Presently, only few traders are dealing with that as ongoing fluctuations in the market have been hampering their margins.
Vessel freight rates
Freight for shipping coal in Panamax vessel from South Africa to India is assessed at USD 7-8/MT. Meanwhile, freight for all size of bulk vessels have increased now owing to lack of availability.
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