Coal news and updates

Shree Cement procures another cargo of 0.5 mt US steam coal

April 7: Shree Cement Ltd has purchased yet another consignment of 0.5 million tons (mt) of US steam coal for delivery till September 2014, an industry source said.

This deal was finalised towards the end of March. It may be recalled the cement-maker had finalised another deal at the beginning of March to procure the same quantum of US steam coal, the source said.

The second deal was for steam coal with a GCV of 7,600 Kcal/kg or 6,900 Kcal/kg NAR for a price on the higher side of $90 per ton CIF range, the source added.

The deal at the beginning of March was for 6,600 Kcal/kg NAR or GCV of 7,400 Kcal/kg material at a price of $95-96 per ton CIF India.

“Basis 6,600 Kcal/kg NAR, the price of the latest deal signed at the end of March worked out to $94 per ton CIF,” the source added.

Shree Cement had purchased the material from a mining company based in Pittsburgh and the material will be loaded at Baltimore Port on the east coast of the US, the source said.

Meanwhile, Shree Cement has already taken delivery of three vessels of US steam coal since the beginning of March.

“One vessel arrived at Mundra Port on March 25, another at the same port on March 29 and the third on April 2. The fourth vessel is likely to berth either at Navlakhi or Mundra on April 17 while the fifth vessel is expected to berth on April 25,” the source added.

“Of the material that has arrived, one vessel has been already sold out by Shree to brick kiln-makers in Punjab at about Rs 8,100 per ton, including loading charges,” the source said.