Portside trade for South African coal anticipated to remain limited amid heavy rains
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Key highlights
- Heavy rains have lashed across the eastern parts of India since yesterday, hitting loading, unloading operations and vehicular movement at the ports.
- Portside prices for South African RB2 grade thermal coal is being offered in the range of INR 4,750-4,800/t, ex-Gangavaram. These offers are for the cargoes that have recently landed or will be coming in the ongoing week.
- However, few traders are offering the previously landed material of RB2 at INR 4,600-4,650/t ex- Gangavaram.
"The cost of our new cargoes is higher and that is why it is being offered at a higher rate", quoted a reputed trader based in Delhi.
- RB2 prices at Krishnapatnam port continues to remain high at INR 4,950-5,000/t.
Stock situation at eastern ports
When the thermal coal prices moved up two weeks back, thermal coal stock especially at eastern ports like Krishnapatnam and Paradip reduced remarkably.
| Port | Week 39 | Week 41 | % change |
| Krishnapatnam | 1.72 | 1.44 | -16 |
| Paradip | 1.07 | 0.91 | -15 |
| Haldia | 0.21 | 0.23 | +10 |
| Gangavaram | 2.47 | 2.62 | +6 |
The vessel lineup maintained with CoalMint reveals that in next 16 days (i.e. till 28 Oct), Gangavaram will be receiving highest quantity of thermal coal at 0.39 mn t (max qty from Australia), followed by Haldia at 0.23 mn t (max qty coming from S.Africa), Krishnapatnam at 0.21 mn t (max qty coming from Australia) and at Paradip only 45,401 tonne is arriving and that too from South Africa.
Outlook
Amid heavy rains expected till Thursday this week, limited trade is being anticipated at eastern ports resulting which portside prices will likely remain unchanged.
