Indonesian thermal coal prices remained stable this week. Low-calorific value (CV) coal prices have been assessed at $57/t FOB, while high-CV coal prices are at $134/t FOB.
Prices remain stable w-o-w amid lack of buying interest in a market which has witnessed ample supply and happens to be driven by buyers.
Traders are in a hurry to sell off cargoes in fear of further price correction and dearth of demand. Currently, high-CV Indonesian cargoes are not attracting buyers amid better realisations of similar grade cargoes being available from South Africa, Columbia and Russia.
India: Portside prices remain stable
Thermal coal prices of 4200 GAR coal at Kandla port have been stable on m-o-m at INR 8,450/t. A deal for Indonesian coal was, however, heard for 3400 GAR concluded by an Indian buyer at INR 6,500/t ex-Magdalla. Another deal for 3800-4000 GAR coal was heard concluded for mid-February.
Imported Indonesian coal prices are higher compared to offers floated by a few major miners in the domestic market. “Hence buying interest for imported coal is lower at present,” a trader source said. Outlook
Indonesian thermal coal prices may witness further correction in the coming weeks amid falling demand. Besides, with alternative options available, Indian buyers are adopting a wait-and-watch policy to conclude deals at the lowest available prices.
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