South Africa's Richards Bay physical coal prices to rise on restocking: Reports

South Africa's Richards Bay physical coal prices are
expected to rise on the back of inventory restocking and improved liquidity
after the New Year break, said analysts from Standard Chartered on Tuesday.

Inventory levels at ports have been declining, especially in India, which
suggests that restocking might start soon, pushing prices up, the report added.

“Inventory restocking will drive prices higher, especially on news of
critically low stockpiles at India's coal-fired power plants, which will
pressure Indian buyers to seek seaborne coal cargoes and improve buying
interest. Seasonal wet weather may further boost prices,” the report said. 

Standard Chartered quoted India's Central Electricity
Authority figures from January 5 as showing that 46 of the country's 89 power
plants had coal stockpiles of less than seven days.

Coal stocks at Indian ports have declined to approximately 9 million MT as
improved transportation from ports to power stations has hastened the depletion
of coal inventories.

“In the near term, we expect buying enquiries to resume as prices ease to
attractive levels for buyers and inventories decline. In the longer term,
demand growth is likely to hinge on economic growth developments,” the
report said.