Indonesian 4200 GAR coal, mostly preferred by Indian importers, is being offered at its bottom prices at USD 28/MT FoB.
Indonesian imported steam coal, which constitutes about 80% of India’s total imports, is still facing uncertainty as market is reflecting a bearish outlook since last few quarters. The current offers of 4200 GAR have declined to USD 35-36/MT CFR Indian East Coast ports and about USD 37/MT CFR West Coast ports for Sept’15 delivery. Indonesian coal prices are following a down trend since the beginning of current year, and are still under pressure on grounds of persistently diminishing Chinese coal demand. China which is one of the largest importers of Indonesian steam coal, has imported about 35% of steam coal from Indonesia this year.
At present, an East Coast based trader is offering about 25,000 MT of Indonesian 3700 GAR Coal ready to sale material (all duties and clearance included) at INR 2,670/MT loaded on wagon from Vizag Port.
Although Indonesian 4200 GAR and 3400 GAR (stock and sale material) is being offered by different traders at INR 2,800-2,900/MT and INR 2,200/MT respectively at Indian East Coast ports respectively, VAT and CST will be calculated further.
Apart from above grades, other Indonesian low GCV coal offers also reached to their lowest; while 4500 GAR is traded at USD 41/MT CFR Dhamra and Paradip ports, 3800 GAR is being offered at USD 31/MT East Coast ports.
Where the lower GCV Indonesian material has been struggling to recover on the ground of falling demand in the global market, high GCV Indonesian material is still on demand as there are very limited miners, who produce high GCV Indonesian grade. Also few countries who have freight advantages from Indonesia are ready to pay high for lower ash material.
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