India: South African portside coal prices drop in recent trades, amid lower bids
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South African thermal coal prices at Indian ports have seen a drop on a weekly basis by INR 300-400/tonne (t). Prices of RB2 and RB3 at Vizag and Gangavaram were heard at INR 9,650/t and at INR 7,750/t respectively.
Subdued long steel demand and falling bids amidst price pressure from sponge players have weighed on the bids for South African portside coal prices. Additionally, a few traders are seen offering material on the lower side amidst panicky market participants and weakening steel market sentiments, highlighted a trading source.
Deals recorded by BigMint:
- A deal for 5,000t of RB3 was closed at Vizag Port at INR 7,700-7,800/t.
- A deal of 15,000t for RB2 was done at INR 9,750/t exw-Mangalore.
- A deal was done for 3,000t of RB2 at INR 9,800/t exw-Gangavarm.
- A trader was heard to have sold around 5,000t of RB3 from Ennore Port at INR 8,000/t
Transnet unfolds operational disruption on the Coal Line
South Africa's Transnet has recently informed about the service disruption that took place yesterday (16th July 2024) which is impacting rails on its network. Several incidents, including 25-KV power outages at Hlungwana, Ulundi- Ilangakazi, and Moolman, an OHTE power outage at Mahulumbe, cable theft at Ermelo (Bothashoek - Woestallen), and an OHTE power trip between Lenjane and Engogweni have affected normal operations at Transnet.
However, these developments are less likely to support prices in the near term given the weaker demand outlook.
