In view of Chinese New Year ahead, its Non- coking Coal buying slowed and Thermal Coal demand subdued amid upcoming Chinese New Year.

Market participants say Chinese buyers are not actively trading, but checking only high grade Non-Coking Coal from Australia and Indonesia. As some of the spot trades have been heard at USD 70-71/MT FOB of 5,800 Kcal/kg (GAR), however Indonesian sellers are offering at USD 71-71.5/MT.

Market participants are expecting Coal demand to jump after Chinese holidays which will also Coal prices will get support from demand.

In 2013, Indonesia has reported Coal production till November to around 388 MnT, whereas their estimation was to produce about 421 MnT in whole year 2013. Indonesia produced 388 MnT of Coal in 2013 (Jan- Nov ) with a total production estimated at about 421 MnT. For 2014 Indonesia has reduced its production estimates to 400 MnT as Ministry is prefers to remain steady on Ccoal production.

Indian Demand

Indian Coal demand also seems little passive, as most of the Industries are operating under capacity, which limits their coal demand. Buyers from India are expecting good discount offers from sellers. Traders are offering Indonesian 4,200 Kcal/kg (GAR) Coal at USD 39/MT FOB basis, buyers are bidding around USD 36-37/MT and sellers are unable to up cope with buyers’ expectation. As a result the market is lull.

Few traders have bought 4,200 Kcal/kg (GAR) cargos at Indian West Coast at USD 51.

Experts are expecting market to remain uncertain amid Central Elections and they are more confident for market to rise after elections.

“Market will be clearer after the election only”, a Gujarat based trader said.