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US coal arrivals likely to rise in coming weeks

19 Apr 2016

The arrival of US origin high sulphur steam coal is likely to rise in coming weeks as some traders have lined up a number of vessels.

“We have lined up a total of 10 vessels for next few weeks with each vessel reaching every 7-10 days,” an official of a trading company said.

The official pointed that they have already brought in two vessels laden with US steam coal in April at western coast port.

The current depressed prices, which are prevailing around $58-60 per ton, augur well for the users even as there is always a pressure to reduce prices, they added.

Another trader too said that he has lined up one vessel every month.

Meanwhile, traders said that at Kandla port brining in material in big vessels is proving to be a problem because then discharge has to be done at anchorage and that raises the cost.

Traders are now looking to bring US coal in smaller vessels, particularly if it is to be unloaded at Kandla, because unloading can be done at the berth itself, but it has to be evaluated whether this will work or not because of increase in freight rates for bringing the material in smaller vessels, they said.