Coal news and updates

HZL floats enquiry to procure 0.2 mt imported coal

November 12: Barely 15 days after floating an enquiry to procure 200,000 tons of imported steam coal, Hindustan Zinc Limited, a Vedanta Group company, again, on November 12, floated an enquiry to procure a similar quantity of the material for loading laycans in December 2013-Janaury 2014, according to information available with ICMW.

The company had, on October 25, floated a similar enquiry for a similar loading period, but it appears that the leading zinc miner has not received offers from traders or miners or the offers were on the higher side, industry sources said.

"The price of standard 6,000 Kcal/kg NAR material has softened in recent days, but the price of off-spec material such as 5,500 Kcal/kg NAR has firmed up due to low availability. And, as HZL is looking for off-spec material, which is generally not available, it may not be getting attractive offers," they added.

Meanwhile, HZL has asked the prospective suppliers or miners to submit their offers within November 12, but it can be extended by a few days.

The company will take delivery of the material at Navlakhi port on the western coast of India in geared supramax or gearless panamaxes or cape size vessels.

The company is looking to procure any origin coal with GCV of 5,700 Kcal/kg (ARB), total moisture of less than 12%, ash content of less than 25%, sulphur of less than 3.5%, HGI of 42-55.

Earlier, on September 30, HZL had floated an enquiry to procure 150,000-200,000 tons of high sulphur (2.5% to 3.0%) coal of any origin for loading in October/November and had subsequently sought offer for a six-month contract for similar cargo.

An Indian trader said, "The terms and conditions, particularly for CIF quotes, of HZL is not that friendly as it pays 90% on the basis of load port analysis and the balance 10% after discharge and disport analysis."