Imported South African thermal coal prices inch up marginally in current week on the ground of moderate buying interest. South African 5500 NAR Coal (RB2) is being traded in the range of USD 64-66/MT CIF India for Jun’15 loading.
South African coal offers are showing a marginal growth this week of USD 2-3/MT which was traded at the level of USD 60-62/MT CIF in the beginning of May’15. Presently, South African 5500 NAR is being traded at USD 64/MT & USD 66/MT CIF India for Capesize and Panamax vessels respectively.
On one hand, Indian buying is moderate owing to INR depreciation against USD, while on the other hand, material booked previously at around USD 62-63/MT CIF India is offered at INR 4800/MT at Krishnapatnam port,Traders are not accepting any negotiation from buyers.
South African coal prices have driven up on the ground of rising demand from India as current Indian utilities are restocking actively before monsoon, coupled with a few domestic issues in South Africa.
An East Coast based trader mentioned, “We are currently offering South African RB2 (5500 NAR) stock and sale material at INR 4750-4800/MT (all duties and clearance included) at Vizag and Gangavaram port Prices may vary marginally as per vessel freight rate and congestion period on ports.”
He also added that Indonesian 4200 GAR coal is being offered at USD 42-43/MT CFR East Coast India. A west coast based trader highlighted, “Currently Indonesian 4200 GAR coal is being offered at INR 3500-3600/MT (stock and sale) at Mangalore Port.”
Owing to longer congestion period at Paradip Port, buyers are preferring to import at Vizag and Gangavaram ports.
Vessel Freight Rate
The freight of shipping coal in Panamax vessel from South Africa to India is assessed at USD 11-12/MT. Freight has risen marginally in last one month and is currently in the range of USD 8-12/MT for all size of bulk vessels.
South African Coal Import to India
India, one of the largest importers of South African coal, registered a considerable growth in import of the material in FY15 and reached 28.9 MnT at the end the fiscal, having risen around 50% compared to FY14. The country has imported about 2.2 MnT of South African thermal coal in Apr’15.
Expected Vessels from South Africa
As per SteelMint data analysis, currently about 1.2 MnT of South African coal is expected to arrive at Indian ports in coming two weeks. Adani, Raw Met and BSPL are expecting Capesize vessels at Gangavaram and Krishnapatnam ports with total quantity of 0.48 MnT from South Africa coal. Vessels are expected to arrive by May end. India has imported about 0.2 MnT coal from South Africa in different ports till 12 May’14.
| South African Non-coking Coal Current Expected Vessels in May’15 | ||||
| Port | Vessel name | Quantity | Receiver | Date |
| Gangavaram | Channal Alliance | 165,000 | BSPL | 20-May-15 |
| Kandla | Nisshin Trader | 164,500 | N/a | 25-May-15 |
| Krishnapatnam | Jabal nafusa | 161,000 | Raw Met Commodities | 23-May-15 |
| Gangavaram | Rahi | 156,000 | Adani | 15-May-15 |
| Paradip | Sri Prem Varsha | 79,700 | RML | 24-May-15 |
| Gangavaram | Jag Aditi | 78,225 | Godawari Ispat | 15-May-15 |
| Krishnapatnam | Panamax Sterling | 67,600 | MBG Commodities | 13-May-15 |
| Vizag | Draco Ocean | 56,000 | N/a | 18-May-15 |
| Vizag | Alpha Vision | 50,000 | N/a | 13-May-15 |
| Krishnapatnam | Engiadina | 31,000 | Janki Corp | 13-May-15 |
| Krishnapatnam | Yasa Kaptan Erbil | 28,000 | Tulsyan Nec | 15-May-15 |
| Gangavaram | Fortune Harmony | 25,000 | Adani | 14-May-15 |
| Haldia | Vishva Uday | 24,500 | Rashmi Metaliks | 16-May-15 |
| Vizag | Densa Cougar | 24,000 | KCT | 19-May-15 |
Assessment Done on 12 May’15
Quantity in MT
Source: SteelMInt Research
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