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Africa|Building|Coal|Freight|Safety|Infrastructure
Africa|Building|Coal|Freight|Safety|Infrastructure
africa|building|coal|freight|safety|infrastructure

Weekly Coal Index Report

A table produced by African Source Markets

Photo by African Source Markets

19th July 2021

     

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Coal had a wild week as buyers reached up to lift high priced offers, right along the curve. This likely spooked other buyers who helped the back end of the curve rally substantially.

Xinhua reports that China is trying to distribute more than 10-million tons of coal from state reserves to secure supplies over the peak summer season.

The state has already distributed more than 5-million tons to the market on four occasions this year to meet rising demand.

The country is also building further coal reserve capacity of up to 100 million tons. Both Capesize and Panamax freight prices in most basins have now subsided somewhat, helping FOB prices to rise to meet ongoing demand.

Covid-19 continues unabated in Indonesia, with rising concerns about supply disruptions to the worlds biggest coal exporter. South Africa is coming out of its 3rd Covid-19 wave, amidst looting of supermarkets and infrastructure last week.

Whilst matters have stabilized, fuel and food supply chains in the KwaZulu-Natal (KZN) province have yet to be fully operational.

RBCT and the TFR coal line were relatively unaffected, although several smaller coal mines in KZN closed temporarily amidst safety concerns. Most mines in Mpumalange province were unaffected.

The weaker Rand is now pushing SA coal prices to higher and higher record prices.

Edited by Creamer Media Reporter

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