Thermal coal market looks feeble

Thermal coal market in India that was witnessing stabilityin prices for past few weeks, has seen a mixed movement in prices in recent days.

Prices of thermal coal coming to India from countries likeIndonesia and South Africa have seen varied movement in the market. On oneside, prices of South African material (RB1) have declined by around $5/MT toreach $80/MT (FOB Richards Bay). And on the other hand, commonly used materialfrom Indonesia (3800 GAR and 4200 GAR) have witnessed a slight uptick recently.

Material of 3800 GAR grade is available and is being offered in the range of $35-38/MT (FOB South Kalimantan) and 4200 GAR is available inthe range of $42-45/MT (FOB). Freight charges for Capesize vessel from SouthAfrica's Richards Bay Coal Terminal (RBCT) to Indian East Coast is at $11/MT.Whereas, Supramax vessel coming from Indonesia's Kalimantan Port is at $12/MTon reaching Indian East Coast.

“We have not heard any deal from Indonesia at improvedprices, price quotations have increased but the material is still being tradedat previous levels”, said a senior official at a Import company based inAhmedabad. Recently Jhonlin Group, one of the leading coal suppliers based inIndonesia were heard to have concluded a deal of 3800 GAR material at $32/MT (FOB) to India, he further added. However, an Importer based in Mumbai is ofthe view that, “Increase in Indonesian coal prices is due to suppliers based inSouth Kalimantan encouraging cartelisation to increase prices of material.”