Indonesian thermal coal offers have increased in Jul’16 by 3-4% due to supply tightness and rise in Indonesian coal demand globally.
The FOB price of Indonesian thermal coal from Kalimantan has gained nearly by 3-4% in Jul’16 and 10-11% during Jan-Jul’16. Continuous rainfall in Indonesia and supply shortage are supporting prices to go up this month also. At present, 4200 GAR, a preferred grade in China and India, is offered at USD 29/MT, FoB for Jul’16 and Aug’16 loadings.
Although, Indian buying sentiments slowed down this month owing to monsoon, Indonesian coal prices have rebounded due to lack of material availability, which has limited bookings in India. Contrastingly in the last week, China has increased coal shipments from Indonesian owing to cut in domestic supply and increased offers.
In India, traders are offering 4200 GAR coal at USD 35-36/MT, CFR Vizag and Gangavaram port for all size of bulk vessels. While, high CV 5000 GAR coal is available at USD 48-49/MT, CFR Vizag for Jul’16 loadings.
Indonesian low CV material 3800 GAR coal is being offered at West Coast ports at USD 29/MT, CFR Kandla.
Some market participants believe that Indonesian thermal coal prices will remain firm this month and may push upward if China enforces its new regulation.
A market participant mentioned, “Indonesian coal prices are firm and expected to remain strong further, but still Indian buyers are in wait and watch mode as they are looking for price corrections in the near term.”
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