Coal news and updates

Received offer for SA cargo at $86/ton CFR: Steelmaker

November 1: A Kolkata-headquartered steelmaker, on November 1, said it has received offers from traders for supply of RB2 grade South African cargo at $86 per ton CFR Dhamra port.

"A number of traders have enough stocks at the port and one of them has offered us to sell the material at about $86 per ton. However, they are offering RB1 grade material at $91 per ton," an official at Adhunik Metaliks Ltd said.

The company, together with its group company Adhunik Alloys Ltd, needs 13,000-15,000 tons of imported steam coal monthly for its captive power plants.

"Our total coal requirement is about 50,000 tons per month. We have linkages for 16,000 tons of coal and buy around 20,000 tons through e-auction and the rest of the requirement is met through imports or increase in procurement from e-auction," the official said.

"We are looking to procure one vessel or about 50,000 tons of imported coal every quarter for blending purposes but, right now, we are buying in small quantities," the official said.