Indonesian Coal prices seem quiet over suppressed market and remain stable during last few weeks.
To support falling Coal prices, Indonesian government is thinking over to curb its Coal production, which will merely help in stabilizing prices as per the industry veterans. Experts believe that any significant change in prices is expected only with drastic production cut by the country, which is hardly possible.
Any significant production cut of Indonesian Coal will directly impact the prices and imports of China & India. Currently, demand from China is lull, whereas India ripping the benefit of International low Coal prices and stocking ahead for monsoon. SteelMint noted that Coal imports have jumped by about 2% to 18 MnT in Apr’14 owing to pre-monsoon booking and it is expected to remain at same level in May month.
Power consumption in India is at peak level and Coal requirement has been increased accordingly at power plants, whereas CIL missed its offtake target by 7% in May’14 and supplied 40.7 MnT.
Market experts see the demand improved a bit of 4,200 GAR Coal in India, which is trading at around USD 37.5/MT on FOB basis, but price of the same is expected to remain stable.
Other grade Indonesian Coal prices have also shown almost no movement and traded at below levels on FOB basis:
3,600 GAR – USD 28/MT
3,800 GAR – USD 31/MT
4,200 GAR – USD 37/MT
4,800 GAR – USD 54/MT
5,800 GAR – USD 67/MT
5,500 GAR – USD 65/MT
India based trader said, “We received good demand from end users as they are booking cargoes in view of coming monsoon”.
In view of covering 16 major Coal unloading ports, Coal stocks have been increased by 8.6% to 10 MnT during Week 22.
Leave a Reply