India's largest coal handling agency - Mjunction

Featureprice so that the cost of generation of power remains low,” hesaid.Surge in international pricesMeanwhile, coal prices across South Africa, Australia andother places continued to surge in November on the back ofhigher demand from Asian countries, traders said.The price of AP1 grade South African coal was quoted atabout $102.50 per ton on November 11, up $1.65 comparedwith $100.85 quoted on November 10. In Australia, the pricessurged by around $1.75 per ton to $108.00 from $106.25 per tonon November 10.Firmness was also seen in Indonesian and Columbianmarkets, traders said, but exact details were not available.Though details of thermal coal export from Australia toAsian countries is not available, the data available with ICMWsuggests that South Africa’s coal export to Asian countriessurged 28 percent month-on-month in October.The total export to Asian countries form RBCT in Octoberrose to 4.25 million tons (mt) from 3.32 mt in September. Forthe 10 months ended October 2010, total imports by Asiancountries exceeded 36.04 mt, about a 13 percent increase over31.79 mt posted till September.The spurt in international coal prices, particularly ofSouth African origin, has forced a large number of Indianconsumers, especially those in the cement sector, to go slowon finalising deals for imported thermal coal, an industrysource said.“Not only have prices become slightly unattractive at over$100 per ton fob for South African coal, for a majority of Indianconsumers, higher stocks with stock-in-trade dealers is alsoleading to lower enquiries from Indian suppliers,” the sourcesaid.“There had been a moderate increase in import of thermalcoal by a number of traders in the last two months. They hadstocked the material and are now looking at opportunities tosell at higher price after the recent jump in international prices.However, most of the consumers have not yet made up theirminds to make purchases at over $100 per ton fob and theyare awaiting prices to soften before making any commitment,”said a consumer.“Very few deals have been struck by Indian buyers forSouth African coal in recent times,” he added.Coal prices started rising sharply from middle of Octoberbacked by huge demand from China and according to forecastby leading brokerage/analyst firms, are likely to go up furtherby 15 percent in 2011.COAL INSIGHTS 25 November 2010