Coal news and updates

Slight improvement in enquiries for US steam coal

With the brick kiln season in full swing and likely to gather momentum in the coming days, the demand for US-origin steam coal is slightly better which is evident from the increase in the number of enquiries even as prices are more or less unchanged, industry sources said.

The current offers are in the range of $59-60 per ton CNF West Coast, they said.

“Though some traders are trying to negotiate a price of $55-56 per ton, the suppliers are not willing to budge below $60. However, for direct and single LCs, the suppliers are willing to offer discounts of up to $1-2 per ton,” they said.

“The current stock position with some of the suppliers is extremely low and they are practically not willing to cut prices, though some others, who are having huge stocks lying at ports may be cutting prices,” they added.

However, it is expected that with the planned arrivals of a few more vessels of US origin coal, the prices may soften a bit.

According to information available with ICMW, one vessel of Shree Cement’s is coming on the west coast, even as the company still has stocks of around 2.50 lakh tons. Another leading supplier is believed to have stocks of around 1.70 lakh tons and another 2.20 lakh-odd tons are on the way.

A third supplier has low stocks of 50,000, but has brought in one vessel on February 28 and plans to bring two more vessels in March.

Meanwhile, a fourth supplier is bringing in one parcel of 75,000 tons of US steam coal for part unloading at Paradip (50,000 tons) and the balance at Haldia Port on the east coast of India.

The fourth trader is believed to be offering the material at Rs 5,500 per ton plus taxes, but exact details are not available.