South African coal 5500 NAR, which is mostly preferred by Indian sponge manufacturers is currently being traded at the level of USD 57-59/MT East Coast Indian ports which will be delivered at the end of Aug’15.
South African coal prices again saw a marginal fall this week which have already reached their bottom in running fiscal. The current offers are assessed at USD 57-59/MT CFR at East Coast Indian ports. The offers were at USD 60-61/MT last week. The current prices have also registered a fall of about 10% in this fiscal when compared with Apr’15 offers.
The constantly falling sponge iron prices, which have declined to INR 1,000-1,500/MT in last one month, are influencing Indian steel manufacturers to cut their production quantity. On the other hand, subdued global steel demand is also forcing international miners and traders to come up with low offers. Currently, coal buyers are unresponsive towards falling prices, on the other side coal traders and miners do not see any hope of recovery soon.
South African RB2, sponge grade coal is currently available at Vizag Port in stock & sale at INR 4,300-4,400/MT (all duties and clearance included), CST and VAT will be calculated further. Same grade material is being offered by Swiss Singapore at USD 57/MT CFR Vizag Port for Aug’15 shipments.
Adani Enterprises, one of the largest traders in India highlighted, East Coast based port Gangavaram, having about 30,000-40,000 MT of South African RB2 (5500 NAR) ready to sell material, is currently offered in the range of INR 4,750-4,800 /MT. Also, about 30,000 MT RB3 (4800 NAR) coal stock and sell material is being offered at the price of INR 4,300/MT at Dhamra Port.
The company also added that the current CFR prices have declined about USD 2-3/MT in last one month and are expected to go down more as the market is not looking hopeful.
Vessel Freight Rate
The freight of shipping coal in Panamax vessel from South Africa to India is assessed at USD 11-13/MT. Freight has risen marginally in last one month and is currently in the range of USD 8-13/MT for all size of bulk vessels.