Indonesian thermal coal prices are still under pressure, driven by over supply and slow demand in the global market.
Indonesian grade thermal coal offers are still under pressure. Indonesian 4200 GAR coal, majorly imported by Indian manufacturers, again declined by USD 1-2/MT in this week and is currently offered at USD 38/MT CFR Krishnapatnam Port for June’15 shipments. Meanwhile few traders are offering same grade material at USD 37/MT CFR East Coast India for June’15 on the grounds of lack in Indian buyers, as well as their negotiations on offer prices.
An East Coast based trader highlighted, “Prices of Indonesian 4200 GAR grade material and below declined due to lack of buying interest in the market. Currently stock and sale material of Indonesian 4200 GAR coal is being offered at INR 2900-3000/MT at East Coast ports. VAT and CST will be calculated further.”
Indonesian Grade Stock and Sale Offers at Vizag Port:
- Indonesian 3800 GAR (5500 GCV KCAL/Kg) coal is being offered at INR 2625-2650/MT.
- 4200 GAR is being offered at INR 3100/MT for June’15 Shipments.
- Indonesian 5000 GAR coal stock and sale material is offered at INR 4500-4600/MT (all duties and clearance included).
Indonesian coal FOB prices have declined about USD 4-5/MT since the beginning of 2015, as driven by major market factors such as slow global demand persistent with oversupply, continuous falling consumption of coal in many countries as they become environmentally concerned and focus on energy source replacement, continuous mining activities by major suppliers etc.
On the other side, India still seems an emerging market for major coal exporting countries as coal demand in the country is expected to increase this year also. India’s total coal import increased about 29% to 233 MnT in FY15.
Indonesian Coal Imports & Prices to India
Indonesian Coal to India
1.Currently, about 2.9 MnT Indonesian grade coal is expected to arrive at different Indian ports till 30 May’15 (updated as on 26 May’15).
2.Indonesian coal vessels carrying about 2.1 MnT of the material are waiting at anchorage position. In May’15, about 9.5 MnT coal has been discharged at Indian ports.
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