*India’s demand remains subdued amid sufficient domestic stocks.
*Lunar New Year break kept activities in China’s thermal coal market subdued.
During the previous week, Indonesian thermal coal prices displayed a varied trend. Prices for low-CV (3400 GAR) coal saw a decrease of $0.03/tonne (t), reaching $36.03/t, while high-CV (5800 GAR) coal observed a minor increase of $0.28/t, settling at $93.37/t.
On the supply front, weather-related disruptions caused some delays in loading last week. Many miners in the Sumatra and South Kalimantan areas faced disruptions that have led to delays in coal deliveries. Additionally, the ongoing presidential election in Indonesia have led to limited activities in the market.
The supply disruptions in Indonesia are also causing Indian buyers to explore alternative sources for their supply. The supply from Indonesia has relaxed compared to last week due to more miners securing approval for their annual production quota.
The Lunar New Year holidays in China led to a quiet thermal coal market, with limited participation from Chinese market players. However, as the holiday period concludes, there is anticipation of improved demand from China in the spot market in the upcoming week. Some demand has been observed from Chinese power plants for Indonesian thermal coal.
In India, demand remains subdued due to ample domestic stocks. Seaborne coal demand is also weak. However, to address the demand for domestic stocks, more railway rakes have been made available. Additionally, supply disruptions in Indonesia have prompted Indian buyers to explore alternative supply sources and rely more on domestic coal supply.
India: Portside prices stable
Thermal coal prices for 4200 GAR coal at Kandla Port remained largely unchanged at INR 6,100/t. The prices remained unchanged due to subdued demand.
Outlook
Indonesian prices may not see any significant rise in the coming weeks, as demand from China and India may not be significant. Additionally, on the supply side, Indonesian supply has eased compared to last week, attributed to more miners receiving approval for their yearly production quota.