China’s growing concerns regarding a slow-down in economic growth has supported Indonesian coal prices this week, as buyers had returned to the import market to cover their short term coal requirements.
Amid the growing trade tension with the United States, Chinese government was critical that the economic growth could slow due to the trade and financial risks-prior to which the government was willing to take necessary actions to meet its economic growth targets.
The measures include boosting domestic demand, while promoting the healthy development of credit, stock, debt, foreign exchange and property markets.
In the wake of the declaration, several traders had significantly raised the offered coal prices at major Chinese loading ports, leading buyers to meet their short term coal requirement from Indonesia.
An Indian trader was a bit confused regarding the present scenario of the Indonesian coal prices, citing that Chinese buyers had remained quiet in the import market, which was the main reason for the Indonesian prices sliding down. While, the rumor of import restriction was still going on, prices have again rebounded due to the change in Chinese governments’ policy.
He added that China was the major factor behind the rise in low CV Indonesian coal prices this week, with buying interest for 4200 GAR coal in the range of USD 42-42.5/MT, FoB Kalimantan. Whereas, demand from India although had remained intact, but their buying interest was only close to USD 40.5/MT, FoB Kalimantan.
Indonesian 4200 GAR coal was offered at USD 42/MT, this week, while offers for 3800 GAR coal was heard at around USD 33-34/MT, FoB Kalimantan.
Price of high CV coal grades continued their fall; however, the amount of fall had been lowered this week. Indonesian coal index for 5000 GAR was assessed at USD 61.64/MT this week, down merely by USD 0.73/MT from previous week.
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