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Friday, 08 January 10
SA COAL PRICES TO SPIKE ON RESUMED INDIA BUYING


South African coal prices are set for another price surge to over $100 a ton FOB as Indian and Chinese buyers compete for limited prompt supply, producers and traders said.

Indian buyers have been waiting since October for South African prices to fall back to $50,00 and many are yet to buy substantial tonnages which they have committed to end-users for Q1 delivery, traders and producers said.

Contrary to Indian traders' expectations, South African prices rose steadily during November and surged in December and again in early January to around $90,00 a ton FOB Richards Bay.

"The Indians have totally missed the boat. We have nothing left for Q1 and not much for Q2 and we're not alone. We've done business into China already and have enquiries for one-million tons from one Chinese utility alone," one major South African producer said.

"India needs at least 1-1,5 million tons a month from South Africa and if you assume cautiously that they only need to buy half of that during Q1, they will struggle to find it from anywhere in the market," he added.

India took over 30% of South Africa's 62-million tons of exports in 2009 and needs a similar tonnage in 2010.

"We've definitely noticed a rush in calls from desperate-sounding Indian trading companies looking for February and March coal," one broker said.

"Some of them are starting to realise that the market is genuinely tight and prices are not going to go down. They need to make some decisions very quickly if they want South African coal," he said. To read more  Mining Weekly / Reuters



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Recent News

Thursday, 07 January 10
INDONESIAS COAL OUTPUT MAY RISE TO 309 MILLION TONS IN 2014 - BLOOMBERG
Indonesia’s coal production may rise to 309 million tons by 2014 from an estimated 250 million tons this year, Bambang Setiawan, director-gene ...


Wednesday, 06 January 10
RICHARDS BAY SAYS 46% OF COAL EXPORTS WENT TO EUROPE
Richards Bay Coal Terminal, through which almost all of South Africa’s coal exports are routed, said 46 percent of the coal it exported in 200 ...


Wednesday, 06 January 10
CHINA-AUSTRALIA INVESTMENT TIES SEEN IMPROVING IN 2010
Australia and China showed a united front in a bid to improve investment ties as they signed a $3-billion coal deal on Wednesday, following a rocky ...


Wednesday, 06 January 10
INVESTMENT IN MINING TO TOP $2.5B IN 2010
The government plans to invest US$2.5 billion in the mining sector, an official said Tuesday. Bambang Setiawan, the director general of mineral r ...


Wednesday, 06 January 10
SAS 2009 COAL EXPORTS THROUGH RBCT FLAT AT 61MT
Exports through South Africa’s Richards Bay Coal Terminal (RBCT) remained flat in 2009, as the terminal faced “critical business challen ...


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