Demand from Chinese market continues to be weak and China's thermal coal market remains in the oversupplied zone. Prices of thermal coal between 5800 to 5000 kcal/kg came down further by 5 y/t. Small and Medium coal mines have now cut production.
Demand for Imported coal in India looks decent but supply will be affected by monsoon that will disturb production from domestic mines as movement of material becomes difficult. Tight supply and logistical problems may push prices up during Jul-Aug period. With rupee now stronger (touched a 4-wk high of 54.66 on Tuesday), imported coal may look more affordable and attractive.
It is reported that coking coal is being imported into India in good quantities as thermal coal takes a back seat with demand from manufacturing sector being subdued owing to low capacity operations.
Indonesian origin coal of 6300-6100 GCV is being quoted around $82-84 FOB.
Leave a Reply