Rapid rise in South African coal index are making Indian buyers cautious for increasing thermal coal import. Today’s index reached at USD 60/MT, FoB Richards bay.
South African thermal coal, mostly traded in India, is facing price volatility at present; resulted in lull buying interest for the grade. In India, buyers are preferring to purchase material in small quantity and waiting for stability in prices in order to evaluate accrual price value.
In last 15 days, South African coal prices moved up by USD 2-3/MT and then fall again next day. This shows that the market is highly uncertain.
Meanwhile, South African coal index reached at USD 60/MT, FoB today for Jul’16 loading. Australian thermal coal offers have also moved up and 5500 NAR coal is offered at USD 47/MT, FoB.
A capsize vessel of 5500 NAR coal is heard to offered at USD 58/MT, CFR Dhamra Port for current loading. Also, the same grade material is available at USD 58-59/MT, CFR at Gangavaram and Vizag Ports in panamax vessel for Jul’16 loading. While, low CV material 4800 NAR coal is available at USD 48/MT, CFR at Gangavaram Port.
An East Coast based trader mentioned, “There is no such fundamental logic to support price hike in the market, although demand is sluggish globally and the given level is too expensive to book cargo presently. Also, no enquires are reported; only regular buyers are taking material in small quantities”.
In the current scenario, there are very limited bookings heard in the market by end users. Prices are moving up constantly, making traders cautious to take position quickly.
At Indian ports, very less material is available in stock and sale. Traders are offering 5500 NAR coal at USD 4,700-4,800/MT at East and West Coast of Indian ports.
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