Indonesian Steam coal offers continue to maintain upward trend for further bookings as Chinese coal demand is rising persistently.
Over the month, Indonesian coal prices rose sharply on the grounds of supply tightness and increased coal demand in China. While, lack of cargo availability for prompt bookings has kept offers firm. Also, now-a-days sellers are driving coal market and taking advantage of supply tightness.
Usually, Chinese demand increases during Aug-Nov for winter restocking, but fall in domestic coal production pushes to source more coal this year.
At present, Indonesian 4200, largely preferred by Indian and Chinese utilities is available at USD 31/MT, FoB for Aug’16 loadings. While, 3800 GAR coal is USD 24-24.5/MT, FoB. High CV material 5000 GAR is offering at USD 43-44/MT, FoB for the same period.
One west Coast based Indian trader is offering 4200 GAR coal Supramax and Panamax shipments at USD 37-38/MT, CFR Kandla port for Sep’16 first week delivery. Whilst, Indonesian high CV Coal 5000 GAR is offering at USD 50/MT, CFR.
Stock and sale offers at ports
Indian buyers are not affected by rise in Indonesian coal offers. Currently, Indian buyers are resistant for heavy imports as enough coal stock is lying at Indian ports. While older material is available at cheaper cost then new arrivals.
• 4200 GAR coal 70,000 MT stock and sale material is available at Kandla port, offering at INR 3,200-3,300/MT, loaded on truck basis. Low CV 3800 GAR is available at INR 2,550-2,600/MT at the same port.
• High CV 5000 GAR Indonesian coal is being available at INR 3,800/MT, stock and sale at Kandla port.
• At East Coast port 4200 GAR coal is offering by traders at INR 3,300/MT, Vizag port (all duties and clearance included, VAT & CST will be added further). Meanwhile 3600 GAR coal is offering at INR 2,350/MT at Vizag port.
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