Indian imported grade, South African RB2 (5500 NAR) coal offers increased marginally as compared to last week as reopened sponge iron units uptick demand.
In the current scenario, rising appetite for South African RB2 coal by few domestic sponge iron manufacturers have increased imported offers to India. At present, South African 5500 NAR coal (RB2) is being traded at USD 64/MT CIF India for July’15 shipments, which is a negotiated price. Actual offers from sellers are comparatively higher.
Some sources highlighted, “Currently South African RB2 coal stock and sale material is being offered by a trader at INR 4850/MT at Gangavaram Port. Same trader has booked material for July shipment at USD 64/MT CFR India. Material is expected at Vizag and Paradip ports.”
Another trade source confirmed that an East Coast based trader is offering about 30,000 MT stock and sale material of South African 5500 NAR coal at INR 5000-5100/MT at Paradip Port (all duties and clearance included).
He also added, Adani Enterprises is expecting a Panamax shipment of about 75,000 MT of South African RB2 coal, to be discharged at Dhamra and Haldia ports in July’15.
Earlier, Indian sponge manufacturers were struggling with iron ore supply crunch as affected by mining ban in Odisha. Now the government has removed restriction under MMDR Act 2015, as well as started supply of iron ore since mid of May’15, which in turn reopened many closed sponge units. On one hand, South African RB2 coal demand from sponge manufacturers has increased to cater the appetite of restarted units, additional demand of coal has increased offer price of South African coal for July shipments on the other.
Waiting Period at Ports
- Vizag: 5-7 Days
- Dhamra: 10-12 Days
- Gangavaram: 2 Days
- Paradip: 7-8 Days
- Haldia: 3-4 Days
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 3.2 MnT of South African thermal coal in May’15 which was about 2.2 MnT in Apr’15.
Vessel Freight Rate
The freight of shipping coal in Panamax vessel from South Africa to India is assessed at USD 9.5-10/MT. Freight has declined marginally in last few weeks and is currently in the range of USD 7-11/MT for all size of bulk vessels.
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