South African coal offers are reflecting a stability in the range of USD 48-50/MT, CIF India for Dec’15 deliveries, after an uptick in preceding week.
Post a marginal rise of about USD 2-3/MT week earlier, now South African RB2 coal offers remain unchanged this week at USD 48-50/MT, CIF India for Dec’15 deliveries.
Offers for South African grade is more or less stable owing to subdued demand and constant industrial slowdown globally.
However, Indian buyers are preferring to import low GCV South African coal instead of Indonesian. The major reason behind this is South African coal prices and grades are very competitive owing to its low moisture content compared to Indonesian.
At present, South African RB2 offers are USD 47-48/MT and USD 49-50/MT, CIF Vizag and Kandla Ports for Nov’15 shipments respectively. While, low GCV South African RB3 is offered at USD 37-38/MT, CIF India and South African high GCV 6000 NAR coal at USD 57/MT, CIF East Coast of India for Dec’15 deliveries.
However, few traders are offering South African RB2 old material at USD 46-47/MT, CIF India at Kandla Port. About 30,000 MT RB2 material is lying at Kandla Port for sale.
[su_quote]An official from a biggest coal trading firm in India highlighted, “At present, offers are stable for South African coal as demand is subdued amid industrial slowdown. Currently, we are offering South African 5500 NAR at USD 50/MT, CIF Mangalore Port in panamax vessel for Dec’15 deliveries.”[/su_quote]
He also added, market is volatile; traders and sellers have to take position with low offers as driven by others.
South African coal offers at ports
• South African 5500 NAR coal is offered in stock and sale basis at INR 4,200/MT at Mangalore Port (VAT & CST added further).
•Same material is being offered in the range of INR 4,300-4,400/MT at Kandla port by different traders (all duties and clearance included).
• Currently at Vizag port, about 50,000 MT of South African 5500 NAR coal ready to sell material is offered at INR 3,900-4,000/MT. Meanwhile, RB3 is offered at INR 3,500/MT at the same port.
• About 50,000 MT Indonesian 4900 GAR expected to reach at Kandla port on 22 Nov’15. Material is offered by a trader at INR 2,650/MT, port loaded on truck (all duties and clearance included).
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