* Weak rupee, credit woes squeeze Indian trade
* Chinese defaulted cargoes offered at discount
* India port stockpiles seen at 6-7 million tonnes
By Jacqueline Cowhig and Malini Menon
LONDON/NEW DELHI, July 27 (Reuters) – Indian coal markets
are seeing scattered defaults among end-user and trade buyers in
part because of a 20 percent slide in prices this year, although
the vast majority are honouring their contracts, Indian trader
said.
International coal prices have slumped to about $85 a tonne
for South African cargoes from comfortably over $100 in December
because of oversupply and tepid Asian demand.
The weakness of the rupee against the U.S. dollar, along
with ever-tightening credit availability, is squeezing the trade
middlemen who are holding high-priced imported coal inventories,
traders have said.
“There are some defaults by smaller traders and also two
cement makers,” said a source at one of India’s biggest coal
importers, who declined to be identified.
South African producers, who supply India’s traders and
cement and sponge iron makers, said they had not experienced any
direct Indian defaults but were wary of any indirect impact.
Continued…
