Coal news and updates

Jaypee floats enquiry for 4 capesize cargo of imported coal

January 14: The Jaypee Group recently floated an enquiry to procure four capesize cargo of imported steam coal for loading in the first quarter of 2014, a source told ICMW.

"The enquiry was floated last week with traders as well as miners and it is primarily for the South African material with calorific value of 5,500-6,000 Kcal/kg (NAR)," the source said.

"The company is looking to get offers on FOB basis from miners and on CIF basis from traders," the source said.

Going by the current enquiries, Jaypee Group is likely to end up with total imports of around 2.4 million tons of steam coal in 2014.

The source, however, said the overall import quantity may be slightly less than 2.4 mt in 2014 as there may be a slowdown in purchases during monsoon.

"Moreover, the outcome of the general elections will also impact overall growth of the cement industry which, in turn, will impact coal procurement. Right now, the economy is showing signs of improvement, but a clear picture will emerge only after the elections in April-May," the source added.

Asked about the expected offer prices, the source said the company is looking to get FOB offers at around $80-81 per ton and CIF offers at around $96-97 per ton.

"The current index-linked price, according to my estimate, for April-May loading is at around $81 per ton and for January loading is around $83 per ton," the source added.