Indonesian coal prices have extended its downward journey this week, as buying interest from China continues to remain low.
Chinese buyers were on a buying spree prior to their New Year Holidays, while the cold weather in the country had also supported the import demand. However, coal buyers have made a slow return to the Indonesian coal market, primarily due to availability of ample coal stock.
Coal price of 4200 GAR have move down to USD 44/MT, FoB Kalimantan, this week. As per CoalMint’s research, monthly average price of this coal grade was assessed at USD 51.15/MT in Feb’18. Offer for 3800 GAR coal were heard at USD 36/MT, FoB Kalimantan.
The decline in Indonesian coal prices has also been affected as a result of improvement in coal supply, where the demand has still remained slow.
Lately, Indonesian coal production has recovered from the impact of bad weather, which too has put downward pressure on the coal prices.
Indian Market Scenario:
The free fall in Indonesian coal prices have kept Indian buyers’ at bay, who have halted their import deals, waiting for further correction in prices.
An Indian trader had reported that demand for coal has been steady; however the importers had turned aside from the continuously declining coal market. He was expecting that the prices may stablize in Apr’18, only then we can see spurt in coal imports.Indian coal import from Indonesia was down during the Jan-Feb period.
As per the data provided by CEA, Coal imports by Indian Power Plants had fell to a 6-month’s low of 4.06 MnT in Feb’18. However, the coal demand for the summer season is likely to boost imports.
At present, Indonesian 4200 GAR coal was assessed at USD 54-55/MT, CFR India.
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