South African 5500 NAR coal CFR India offers are unchanged and assessed at the same level as previous week. Offers are stable owing to slow buying interest persisting in the market.
South African imported grade RB2 coal, mostly preferred by sponge manufacturers, is offered at USD 62-63/MT CFR at Krishnapatnam Port for Jun’15 shipments. Meanwhile, same grade material is offered at USD 63-64/MT at Vizag Port. Few buyers are negotiating on offer prices and are very keen to purchase material on comparatively low price.
An East Coast based trader highlighted, “Stock and sale material of South African 5500 NAR (RB2) coal is being offered at INR 4700-4800/MT at Krishnapatnam Port (all duties and clearance included), but currently buyers are negotiating at INR 4650/MT.”
South African RB3 (4800 NAR) imported material loaded on truck basis is being offered at INR 4,050/MT at Krishnapatnam Port (VAT & CST excluded).
Moreover, offers are flat owing to moderate buying in India. On one hand, Indian buyers are unwilling to take position in the market and are being very calculative owing to liquidity crunch. Current market reality is influencing them to keep money in hand. On the other hand, continuous falling sponge iron prices, coupled with feeble demand across steel and raw material sectors, have been restraining domestic sponge manufacturers to buy more coal from the market.
Vessel Freight Rate
The freight of shipping coal in Panamax vessel from South Africa to India is assessed at USD 9-10/MT. Freight has declined marginally in last one month and is currently in the range of USD 6-10/MT for all size of bulk vessels.
South African Non-Coking Vessel at Indian Ports
As per SteelMint’s analysis, India may import about 3 MnT of Non-coking Coal from South Afirca at the month of May’15. About 2.2 MnT of South African coal has been imported till the date in May’15 and about 0.2 MnT coal is waiting at anchorage position. Till the end of this week about 1.5 MnT coal is expected to arrive at Indian ports (updated as on 22 May’15). JSW Steel, Bhushan Steel, KISPL and Raw Met are expecting capsize vessels at Krishnapatnam, Gangavaram, Kandla and Krishnapatnam ports respectively.
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