Indonesian Steam coal prices moved up marginally in March about USD 1-2/MT, the first rise of 2016. Also reached to its six-month high.
Persisting weak Global coal scenario dragged Indonesian coal to its bottom a year ago, while miners and traders were highly pessimistic for any price hike. However current marginal rise in Index imitating a positive hope to strengthen further.
While Indonesian coal offers increased about USD 1-2/MT, FoB in March which have recorded its 6 month high. While offers gaining ground on limited cargo availability for current bookings.
Meanwhile, Indonesian Traders are offering, 4200 GAR coal at USD 27/MT, FoB and 3800 GAR at USD 22-22.5/MT, FoB for Apr’16 end loading. While high GCV Indonesian grade 5000 GAR and 5800 GAR is being offered at USD 46/MT, FoB.
It is also noted that, Indian buyers are asking for heavy discount on offers as having plenty of suppliers’ option in the market.
At present an Indian trader is offering Indonesian a Panamax vessel of 4200 GAR at USD 33/MT, CFR West Coast India Apr’16 loading. Although Indian buying is remained dull in the month.
One East Coast based Indian trader mentioned, “There have seen slight pickup in China for low GCV Indonesian coal, contrastingly Indian buyers preferring to import high GCV coal now. Moreover there have moderate demand for all type of Indonesian grades but rise in Indonesian domestic consumption and thin supply triggering prices go up.”
India has been reduced imports from Indonesia, a convention source of the country from one decade. Indian buyers keen to purchase high GCV Indonesian grade for blending purpose as low GCV coal is available largely in India. While narrowing price gap between different Indonesian grades also Stimulates to purchase high GCV coal.
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