Indonesian steam coal prices have fallen again this week by USD 1-2/MT, surrounded with oversupplied and weak global market.
Moderate demand coupled with oversupplied coal market has already dragged down Indonesian coal index to the bottom. This week also offers fell by about USD 1-2/MT for Dec’15 loadings. Indonesian 4200 GAR, mostly traded to India, is available at USD 31-32/MT, CFR India for Jan’15 deliveries at all Indian port.
A Panamax vessel of 4200 GAR is being offered at Kandla port at USD 31/MT, CFR for Dec’15 mid loading. Meanwhile, high GCV material 5000 GAR is traded at USD 42-43/MT, CIF India for Jan’15 deliveries.
[su_quote]An India based trader said, “Rise in interest for low GCV material by China in Dec’15 has allowed Indonesian coal prices to be stable a week earlier, but it would not be phenomenal for long term sustainability.”[/su_quote]
Stock and sell offers have declined currently at ports; 4200 GAR imported material is offered at INR 2,800-2,900/MT (all duties and clearance included, VAT & CST will be added further) at all Indian ports.
At the same time, Indonesian 3800 GAR ready to sell is available at INR 2,650/MT at Navlakhi Port. Currently, few traders are offering old martial comparatively at low prices at few west coast ports.
[su_quote]An east coast based trader mentioned, “Coal market has been reflecting a downtrend without following as such a constant pattern. Indonesian coal prices, which already hit rock bottom, turns to be softer again under supply glut and dwindling demand globally. Currently, 4200 GAR is traded at USD 31-32/MT, CFR India at all ports.”[/su_quote]
He also added, at present, trading of Indonesian low GCV material is slowing down as it isn’t seems feasible for miners to deal with negotiated price. Indonesian 3800 GAR is offered at USD 20/MT, FoB.
India’s Nov’15 coal import from Indonesia also declined by 4.2% to 9 MnT against 9.4 MnT in Oct’15. It is also expected to fall further in Dec’15.
Bulk shipping freight rates have remained almost stable in this week as inactive demand continued to prevail. Crude oil prices have remained low. On 3 Dec’15, crude oil prices were reported at USD 37.89/barrel, ruling out any influence on shipping freight rates.
Current freight rates from Indonesia to India in respect to Supramax, Panamax and Capsize vessels are USD 7/MT, USD 5.5-6/MT, USD 4/MT respectively.
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