Coal news and updates

Volatility in SA coal prices may push cement-makers to US coal

March 20: The Indian cement industry, which showed an appetite for high-sulphur US thermal coal in 2013, may continue to favour the same over South African coal if the latter shows wide movement in the coming months, trading sources said.

"There was a definite trend in the cement industry to go for US coal late last year. This may continue if RBCT coal prices show excessive volatility," a Kolkata-based importer of South African coal said.

RBCT spot prices (6,000 NAR) have shown wide movement between $71/ton FOB and $86/ton FOB during September 2013-March 2014.

"The cement manufacturers, especially those located in the southern region, are not doing well and must look for the cheapest combination of raw materials. So they will look at all factors – freight, FOB prices, blending percentage and take a decision," he said.

While the freight costs are much higher for US cargo, the stable coal prices in that country enable buyers to plan well in advance, he added.