Reuters reported that Indian cement maker Ultratech has bought 10 Handymax cargoes of South African coal at USD 73 per tonne to USD 74 per tonne CIF for July to September delivery.

One trader who participated in the tender unsuccessfully said "This tender saw extremely aggressive offers by some parties, which give a South African FOB price of USD 53 a tonne or less."

Traders familiar with the tender result said Indian trading house Adani was awarded the majority of the cargoes with the balance split between traders Swiss Singapore and Visa.

According to South African producers, India has become a vital market for South African coal during the past 3 years. India accounted for over 30%t of South Africa's steam coal exports in January to May. India is likely to import 12 million tonne out of South Africa's projected exports of 67 million tonne to 68 million tonne in 2009.

(Sourced from Reuters)