Rising China’s coal demand drives Indonesian steam coal prices on upside this week, besides supply tightness added some favor on Indonesian index.
Indonesian coal index is moving up persistently and hit 16-months high since Apr’15 for Aug’16 loading. Supply tightness of mid CV coal and rising global demand amid lower Indonesian production persistently boosting offers.
At present Indonesian Index prices have increased by USD 3-4/MT for further bookings. 4200 GAR coal offers reached at USD 30-31/MT, FoB for Aug’16 and Sep’16 loadings.
Indonesian 4200 GAR, mostly traded in India, is available at USD 36/MT, CFR for Aug’16 loadings; Sep’16 bookings are bit higher at USD 36.5/MT, CFR Indian ports. While, 3800 GAR and 5000 GAR material is being offered at USD 30/MT and USD 49-50/MT, CFR West Coast ports for Aug’16 loadings.
An Indian trader mentioned, “on current scenario its being difficult for Indian buyers to match with the market offers. Due to ongoing monsoon, Indian buyers are not in hurry to book material quickly as they are waiting to correct offers shortly.”
He also added, Indian buyers are not taking position but those who are waiting for price corrections since couple of weeks, now have to pay higher for current bookings.
Presently in India, ready to sale material of 4200 GAR is available at INR 3,300/MT at Kandla Port (all duties and clearance included, VAT & CST will be added further). Meanwhile, 5000 GAR and 3800 GAR coal is being offered at INR 3,900/MT and INR 2,600-2,650/MT at the same port.
Leave a Reply