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Indian thermal coal: Limited availability of S African 5,500 NAR

Reports of limited availability of South African 5,500 kcal/kg NAR continued to filter into the Indian market amid lukewarm interest, with some cement companies covered until the end of the year, sources said Wednesday.
Platts assessed the 30-60 day prices for CFR India West at $77.20/mt, up 40 cents on the day, and CFR India East 5,500 kcal/kg NAR coal at $76.40/mt, up 60 cents on the day.
An India-based trader said there was some demand for South African 5,500 kcal/kg NAR coal, but there was some tightness of supply.
He added that he had not heard any deals lately, but Indian bids were at $4 discount to the Richards Bay 6,000 kcal/kg NAR price.
A second India-based trader said his buying interest for a Panamax shipment of 5,500 kcal/kg NAR South African coal for September loading was at around $74/mt CFR east coast to offers of $78/mt CFR.
A third India-based trader said he was offering a Panamax cargo of South African 5,500 kcal/kg NAR at around $78-79/mt CFR east coast India for September loading, but he had not been able to find any buyers yet. He noted that some cement companies he spoke with were already covered till December while others did not require any South African coal.
A Dubai-based trader said offer price for a September-loading Panamax cargo of South African 5,500 kcal/kg NAR was at $77/mt CFR west coast India and at around $76-76.50/mt CFR east coast India.
He said reports of limited availability of South African coal stemmed from suppliers’ reluctance to put out offers.
“If there is firm interest, then they will do the trade. But they would not want to divulge details of the deal,” he said, adding big miners could hold onto their cargoes longer and were not in a hurry to sell.
He added that there was buying interest for Indonesian 5,500 kcal/kg NAR coal, “But they are not getting a good-quality cargo, so they turn to South African coal.”
This source also noted that offers for Australian 5,500 kcal/kg NAR cargoes continued to float in the Indian market but not many were interested in this material because of the high ash content. Offer prices were around $73/mt CFR east coast India on Panamax basis, he said.
“Unless Australian coal is at a rock-bottom price, buyers would not consider it,” this source said.
INDONESIAN OFFERS
The third India-based trader said a Supramax cargo of Indonesian 4,200 kcal/kg GAR coal for loading in September was heard offered at $46/mt CFR east coast India but no counter bids were immediately available.
Meanwhile, offers for September-loading Panamax cargoes of 5,000 kcal/kg NAR coal were seen at $62/mt CFR west coast India, a fourth India-based trader said. He pegged the Panamax freight rate from Indonesia to west coast India at $13-13.50/mt.
Source: Platts