Richards Bay and the API4: How South African Coal Ships
RBCT is one of the largest coal export terminals on earth and the physical anchor of the API4 index. What buyers of Panamax cargoes need to know.
Every serious conversation about seaborne thermal coal from Africa runs through one place: the Richards Bay Coal Terminal on South Africa's KwaZulu-Natal coast. With nameplate capacity around 91 million tonnes a year, RBCT is the physical anchor of the API4 index, the benchmark against which South African export coal is priced worldwide.
The RB grade family
South African export coal is sold in three principal grades. RB1 is the flagship: 6,000 kcal/kg NAR, the specification most Asian and Mediterranean utilities burn. RB2 sits at roughly 5,700 kcal/kg, and RB3 at 5,500 kcal/kg, popular with Indian buyers, particularly sponge-iron producers, where the price discount outweighs the calorific penalty.
Why cargo size starts at 55,000 tonnes
RBCT is built for bulk. Berth economics, stockpile management and vessel scheduling all favour Panamax (roughly 60–80,000 tonnes) and Capesize loadings; smaller parcels carry disproportionate port costs per tonne. That is why credible FOB RBCT offers begin around 55,000 MT. Buyers seeking smaller volumes are usually better served by aggregation into a shared stem, something a trading desk can arrange.
Reading an API4-linked offer
Physical cargoes are typically quoted at a differential to the API4 index rather than a flat price, the differential reflecting grade, laycan timing, and market tightness. When you see a flat “POA” on an offer sheet, expect the confirmed terms to be expressed against the index at the point of fixing.
What it means for a coal producer
Richards Bay allocates its capacity through an entitlement system, so the first question any buyer asks a seller of FOB Richards Bay coal is whose entitlement the cargo will load against. Producers without entitlement are not shut out of the export market. Many move tonnes through Maputo instead, at smaller vessel sizes and a different cost stack, which we compare in Maputo against Richards Bay.
The second question is the grade. RB1, RB2 and RB3 are not quality rankings in the sense a producer might fear: each has its own buyers, and RB3 in particular has a deep market among utilities and industrial users built around lower calorific value coal. We explain the differences in RB1, RB2 and RB3 explained. A current certificate of analysis on a net as received basis, with ash, sulphur and volatiles, is what lets a buyer price your coal against the index.
If you produce or hold thermal coal and want to know whether there is a buyer for your grade and volume, send us an enquiry.
Thermal Coal
We place thermal coal with named international buyers. Tell us the grade, roughly how much you hold and where it sits, and you will know inside a trading day whether we have a buyer.
