South African Thermal coal offers have been fluctuating since a year. Offers have declined along with low demand and slowing consumption in global market.
South African RB2 (5500 NAR) offers to India have fallen marginally this week; currently at USD 61-62/MT CFR East Coast ports. While, RB2 offers to India have declined by USD 2-3/MT compared to last week prices; was at USD 64/MT in Vizag ports.
South African coal offers have been varying rapidly since a year as highly influenced by persisting uncertainty in global market. Currently, India’s buying is very deliberate owing to domestic coal availability along with INR depreciation against USD. While, material booked previously to India is offered at INR 4,800/MT at Vizag port. Moreover, traders are not accepting any negotiation from buyers.
An East Coast based trader mentioned, “We are currently offering South African RB2 (5500 NAR) ready to sale material at INR 4,800/MT (all duties and clearance included) at Vizag. While, prices at Paradip may vary marginally as per vessel freight rate and congestion period on ports.”
Currently, South African 5500 NAR coal stock and sale material is being offered at INR 4,900-5,000/MT (all duties and clearance included- plus taxes) at Paradip port.
Sources mentioned that Adani Enterprises, one of the largest traders in India, is offering South African RB2 coal at USD 62-63/MT, CIF Vizag Port. Whereas, the same material is being offered at USD 68-69/MT, CIF Dhamra Port. Offer prices at Dharma are comparatively high owing to waiting period and demurrage cost bearded by traders.
Also highlighted, about 300,000 MT of South African 5500 NAR coal is expected by Adani at Vizag, Haldia and Dhamra ports in two panamax and one capsize vessel till the first week of Jul’15.
Vessel Freight Rate
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.
Expected Vessels from South Africa
India has imported about 1.6 MnT Non-coking coal from South Africa in different ports till 11 Jun’15.
As per SteelMint data analysis, currently about 1.3 MnT of South African coal is expected to arrive at Indian ports in coming two weeks. Adani, JSW Energy, COSMOL and Essar Steel are expecting Capesize vessels at different ports with total quantity of 0.78 MnT from South Africa. Vessels are expected to arrive in June.
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