Rise in inquiries from India and China holding Indonesian offers on upside, but it seems doubtful to be persist on the given level for long.
Indonesian thermal coal offers are stable on higher level this week as market is receiving positive response from India and China presently. Prices are more or less stable as Indonesian 4200 GAR is still available at USD 27-27.5/MT, FoB for Jun’16 loadings.
Meanwhile, Indonesian coal market is on better mode as finding more inquires even though there is lack of prompt cargo availability for current loadings.
Mentioned by an Indian importer, “The given situation is quite better for Indonesian coal market as China and India both are tracking cargoes aggressively on the ground of consistent coal demand from the countries. On the other side, supply tightness have impact on Indonesian coal price index”.
Also added, currently offers for Indonesian 3800 GAR are assessed at USD 26.5-27/MT, CFR Kandla Port for Jun’16 loadings.
An East Coast based trader highlighted, 4200 GAR coal is still being traded at USD 33-33.5/MT, CFR Vizag and Pardip ports for Jun’16 loadings. However, most of the traders are offering the same for Jul’16 shipments. So, it is expected that offers will be same till Jul’16.
While, Indonesian high CV material 5000 GAR is available at USD 44-45/MT, CFR East Coast ports, Jun’16 loadings.
In India, there is lack of ready to sale material availability at East Coast ports but few traders are offering 4200 GAR material at INR 3,300-3,400/MT (all duties and clearance included, VAT & CST will be added further).
Moreover, there are many factors influencing Indonesian coal index such as heavy rainfall that impacted mining activities in Indonesia, active participation of India and China amid rise in industrial demand, lack of low CV grades availability. Whilst, continuous inquires and supply tightness have supported prices but it not seems for long term.
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