South African, Colombia thermal coals compete for weak Indian spot demand – Coal

Colombia origin thermal coal is increasingly being sought by traders and end-users in India to compete with South African origin coal, which has been rallying in price for several weeks now.

With the increased interest for Colombian coal in India, sellers of South African 5,500 kcal/kg NAR coal were being pressured to increase their discounts from the benchmark grade 6,000 kcal/kg NAR coal.

“It should pressure our discount, but it could also encourage Colombian sellers to increase their price and meet the spot demand,” a producer-trader of South African coal said.

The source said the supply tightness for the 5,500 kcal/kg NAR grade would likely keep a lower limit on the discount rate, which had been seen to slightly widen so far this week.

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