South African Thermal Coal assessed at USD 63-65/MT CIF Krishnapatnam, India

South African Thermal Coal assessed at the range of USD 63-65/MT CIF India at Krishnapatnam, East Coast based port for delivery in March/April.

Currently offers for South African 5500 NAR steam coal is assessed at USD 63-65/MT CIF Krishnapatnam Port and 6000 NAR (RB 1) at USD 71-72/MT. Buying activities remain relatively low over falling sponge iron prices in Indian market.

South African 5500 NAR (RB-2) coal is being offered at USD 68-70/MT CFR Dhamra port which is predominantly operated by Adani ; currently a Capesize vessel of RB2 is offered at similar rates. The same grade of material is offered at Vizag port at USD 66/MT CIF for April deliveries.

South African 5500 NAR coal has a fixed carbon of 48-52% and is largely preferred by sponge iron manufacturers.

Waiting Period across different Ports
Tuticorin: Within 2-3 days
Gangavaram: Below 12 Hrs
Vizag: About 1-2 days
Dhamra: 1-5 days
Paradip: 1-2 days

[su_quote]Adani, one of the largest traders in India highlighted, East Coast based port Dhamra, having about 100,000 MT material of South African Rb2 (5500 NAR), currently offered at the range of 68-70/MT CIF India.[/su_quote]

Indian demand likely to strengthen in upcoming months

India, one of the world’s largest consumers of coal, presently faces a situation of increased coal demand because of limited domestic supply coupled with current block auction results which did not result in favor of sponge plants.

Post cancellation of coal blocks, the Indian Ministry has completed coal block auction of two phases (Schedule II & Schedule III).Many Indian Sponge manufacturers lost their mines in the auctions and are now left with the choice of either buying costlier coal from spot market or importing fuel. Domestic Steel plants, which collectively owned 72% of the coal mines in prior allocations, presently hold just 32% of blocks.

Total Import from South Africa during April-Feb

South Africa, one of the largest exporters of coal to India has supplied about 26 MnT of coal in the current fiscal till Feb ’15. India’s coal import for South African grade has risen by 30-36% from Oct’14 to Feb’15. Looking at these major issues persistent in domestic market, coal import is expected to increase further in coming months.

Quantity in MnT
Sourced by SteelMint