Coal news and updates

Shree Cement contracts to procure 0.5 mt US steam coal

March 3: Shree Cement Ltd, northern India's leading cement manufacturer, recently contracted to procure about 0.5 million tons (mt) of high calorific value and high sulphur US steam coal, an industry source said.

"The cement-maker has contracted to procure 6,600 Kcal/kg NAR steam coal with sulphur content of 3.5% at a price of about $95-96 per ton CIF," the source said.

"The material will be delivered by baby cape vessels and one such vessels has already been loaded and is expected to arrive at Mundra Port on March 20," the source added.

The freight of baby cape vessels from the US Gulf coast to India's west coast was estimated at $27-28 per ton which means the FOB price of the US coal was around $62 per ton with the balance $6 per ton being insurance cost.