South African off-spec discounts narrow

摘要

Discounts for lower-grade South African off-specification coal against API 4 swaps have narrowed by nearly 64pc since the start of this year on strong interest from the domestic market and increased uptake from key export market India. Average NAR 5,500 kcal/g spot differentials for front two- month loading cargoes narrowed to around minus $7.60/t against the API 4 index over the first three weeks of July from $20.65/t in January (see chart). The discount in July last year was minus $9.90/t.