Indonesian coal offers remained stable in this week for Apr’16 and May’16 cargo loadings.
Indonesian steam coal offers have been firm since over a month. In early March, offers rose marginally as driven by global scenario. A market participant highlighted that it is too early to start speculations for any sustained recover; increase is remarkable but not getting support likewise. While, current market seems gloomy that expected to down shortly.
Besides, there is a lack of demand for mid GCV Indonesian coal in India. Indian buyers are reluctant to book material on offers and looking for discount of USD 2-3/MT, which is pressurizing Indonesian coal index now.
An East Coast based trader highlighted, offers for 4200 GAR are heard to be at USD 32-33/MT, CFR India. Meanwhile, low GCV 3800 GAR is available at USD 27/MT, CFR Paradip.
[su_quote]A source based in West Coast India mentioned, “Indonesian coal prices bounced from earlier but weak demand scenario not reflecting any hope towards price strengthen. We are offering a supramax of Indonesian 5000 GAR coal at USD 44/MT, CFR Kandla for current bookings. While, the same grade 10,000 MT material is being offered by the company at INR 3,750/MT loaded on truck from the same port.”[/su_quote]
At present, an Indian trader is offering a supramax Indonesian 4200 GAR at INR 3,050/MT loaded on truck from Kandla Port. While, 3800 GAR is available at INR 2,600/MT at the same port.
Moreover, Indian demand for Indonesian coal is expected to increase in Apr’16 mid on the grounds of rise in electricity demand in summer. In addition, Indian buyers may take position actively for forward bookings as highly concern on restocking before monsoon.
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