Indonesian Coal Offers Firm on Strong Demand

Rising inquiries from India and China seem to be supportive for Indonesian coal market as offers remained firm at previous level.

Indonesian coal prices are more or less firm in the current week and being offered at the same level for May’16 and Jun’16 loadings. Strong inquiries from India as well as China exerting some support on the Indonesian coal, which in turns as traders and miners are holding their offers for further bookings.

Contrastingly, it is to be noted that Indian buyers are looking for discount but Indonesian suppliers are not ready for any adjustments at the moment which is deterring quick deals in India.

Current offers for 4200 GAR heard to be at USD 32-33/MT, CFR India for May’16 end and Jun’16 loadings. Meanwhile, low GCV 3800 GAR is available at USD 27/MT, CFR Vizag Port.

Besides, India and China, both are preferring to import different grades now. India importing mid CV Indonesian coal, however, China prefers to import low CV material such as 3800 GAR, 3600 GAR etc.

A source mentioned, “Indonesian coal prices are stable at previous level but strong demand scenario influencing to be firm at given level. A supramax of Indonesian 5000 GAR coal is available at USD 40-41/MT, CFR Kandla for Jun’16 loadings.

A West Coast based Indian trader is offering a supramax Indonesian 4200 GAR at INR 3,311/MT at Kandla Port. While, 3800 GAR is available at INR 2,600-2,650/MT at the same port. Also, 3800 GAR is being offered at Vizag in stock and sale at INR 2,450/MT(tax excluded).

Moreover, Indian demand for Indonesian coal has increased on the grounds of rise in industrial demand. In addition, Indian buyers have been more active as highly concern on restocking before monsoon.