South African coal prices, which have been declined sharply since a couple of months, are expected to fall further by USD 1-2/MT at Oct’15 end.
India, one of the largest destination for South African thermal coal, is currently taking advantage of price corrections during the 4th consecutive year. Constant falling offers help DRI units to increase their profit margin amid of industrial slowdown.
At present, South African 5500 NAR offers have reached the level of USD 46/MT, CFR Vizag for Nov’15 loading. While, the same grade material is offered by the traders at USD 48-50/MT, CIF at other East Coast ports.
Current South African low GCV Coal RB3 offers are assessed at USD 35-36/MT, CIF Indian East Coast ports for Nov’15 shipments.
[su_quote]An official from Kamachi Group mentioned, “We are offering South African 5500 NAR coal at USD 46/MT, CFR Vizag port for Nov’15 loading. Current market is still depressed and expected to go down more in Nov-Dec’15 (44/MT for Nov’15 deliveries).”[/su_quote]
He further added, in order to get optimistic for quick price recovery or survival, there is no realistic hope viewing at current coal scenario.
The company is expecting one capsize vessel of South African 5500 NAR coal to be offered at USD 46 /MT. The vessel will be discharge at two different ports viz Gangavaram and Vizag.
Few of the East Coast based traders are also offering very small quantity of RB2 ready to sale material at INR 4,300/MT (VAT & CST will be added further).
However, Vimal Coal, one of the coal traders at West Coast India, is offering about 50,000 MT Indonesian 3400 GAR at INR 2,200/MT loaded on truck at Kandla port.
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