Indonesian 4200 GAR Coal, most preferred by Indian buyers as GCV value is suitable for power plants, is currently offered at INR 3,400-3,500/MT at East Coast based Indian ports. The price includes all duties and clearances.
Indonesian coal prices remain more or less unchanged this week because of sluggish demand in the international market. Current offers for 4200 GAR are assessed at USD 42-43/MT, CFR. While, 4800 GAR coal prices are assessed at USD 46-47/MT and 3800 GAR at USD 27-28/MT on FoB Indonesia basis. Currently the Vessel freight cost is at the range of USD 10-11/MT for supramax and USD 8-9/MT for panamax vessels.
Earlier in 2014, the Indonesian government had proposed coal mining royalties, but not implemented yet. However, the government recognized that increase in mining royalties may lead to more mines closure, which will in turn lead to unemployment in the country.
Indonesian Coal Production, Export and Consumption
Indonesia’s Energy and Mineral Resources Ministry has reported a downfall in coal production in first 3 months of 2015. The total output for 1st quarter of the year recorded at 97 MnT; has down by more than 20% from 124 MnT in 2014.
| Particular | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| Production | 217 | 240 | 256 | 275 | 353 | 383 | 421 | 425 |
| Export | 163 | 191 | 198 | 208 | 272 | 304 | 349 | 359 |
| Domestic | 61 | 49 | 56 | 67 | 80 | 79 | 72 | 76 |
Quantity in MnT
Source: Ministry of Energy and Mineral Resources
Indonesian Coal Supply increases by 24% to India
India, world’s one of the largest coal importers, fulfills its about 80% of coal requirement from Indonesia. In FY15, the country’s import from Indonesia has surged by 24% to 142 MnT, which was 114 MnT in FY14.
| Origin Country | FY15 | FY14 | %Change |
| Indonesia | 141.7 | 114.7 | 24% |
| Australia | 46.7 | 34.7 | 35% |
| South Africa | 29.1 | 19.7 | 48% |
| China | 2.3 | 2.1 | 11% |
| Mozambique | 1.9 | 1.2 | 50% |
| Others | 11.4 | 9.4 | 21% |
| Grand Total | 233.1 | 181.8 | 28% |
Quantity in MnT
Source: SteelMint
Indonesian Coal Vessel at Indian Ports
As per SteelMint analysis, about 2 MnT of Indonesia coal is expected to arrive at Indian ports in coming two weeks. Adani Enterprise and Adani Power are importing about 0.3 MnT and 0.32 MnT Indonesian coal respectively; anticipated to arrive at various Indian ports till 30 Apr’15. In the first half of Apr’15, India has imported about 6 MnT coal from Indonesia.
Indonesian Coal expected to arrive at Indian Ports
| Ports | Quantity |
| Mundra | 0.48 |
| Tuticorin | 0.38 |
| Ennore | 0.28 |
| Krishnapatnam | 0.27 |
| Hazira | 0.19 |
| Navlakhi | 0.12 |
| Vizag | 0.09 |
| Karaikal | 0.06 |
| Revdanda | 0.06 |
| Dharamtar | 0.05 |
| Dighi | 0.03 |
| Mangalore | 0.03 |
| Jaigarh | 0.03 |
| Grand Total | 2.06 |
Quantity in MnT
Source: SteelMint
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