globalCOAL is to consider alterations to South Africa's Richard's Bay market after complaints about high bids for unusual tonnages.
According to globalCOAL, there has been an increase in the number of buyers looking for non-standard tonnages for RB1 coal since January 2015.
The bids have often been above market value, which may be tilting prices higher, with a subsequent effect on the API 4 index, the benchmark for pricing South African coal.
The majority of normal bids and offers are made in multiples of 25 000 t but in recent months there had been an increase in bids for non-standard amounts, such as 60 000 t, which fewer sellers can meet.
Such volumes previously made up less than 1% of trade on the market over the last five years. This year, that has jumped to 14%.
Edited from source by Joseph Green. Source: Reuters