Coal news and updates

Rumours of default by coal trader

September 5: A Kolkata-based trader is rumoured to have defaulted on taking delivery of a South African (RB1) cargo as he could not open a letter of credit (LC) till a day before the scheduled laycan, an industry source claimed.

"I have heard that a Kolkata-based trader has defaulted on taking delivery of a South African (RB1) cargo. The material was to be loaded between September 5 and 19 laycan, but the LC could not be established as late as till September 4," the source claimed.

The source, however, could not name the buyers and the suppliers, saying he is trying to find out the names.

"It is a Kolkata-based buyer and had not established LC till September 4. I don't think it is one of the leading traders, otherwise the name would have been out by this time," the source added.