Limited cargo availability along with strong global demand, again moved Indonesian coal prices up at higher level this week. While strong Chinese buying triggered for the price hike.
Buyers are still struggling to match with the price hike as Indonesian coal prices are rising persistently on the wake of supportive bullish market sentiments. While coal offers have again jumped by USD 3-4/MT, FoB compared to last week.
The FoB offers for early Nov’16 loadings heard, Indonesian 4200 GAR coal is at USD 46-47/MT, 5000 GAR at USD 69-70/MT and low CV 3800 GAR at USD 37/MT.
Supply tightness of Indonesian grades, Chinese strong demand, heavy rain in Indonesia and bullish market of other commodities are the major reasons behind the current price hike.
[su_quote]Mentioned by An East Coast based trader, “Buyers and traders both are skeptical on the current market hike and it is very difficult to drop a fixed price as it keeps moving up on daily basis and this has resulted in slow market trade.”[/su_quote]
Among the highly enquired coal market only few cargoes available for prompt bookings and Indian buyers are preferring to opt low CV Indonesian coal. At present 4200 GAR, mostly preferred by Indian power utilities is being offered at USD 54/MT, CFR Nov’16 shipments. High CV 5000 GAR coal is available at USD 76/MT, CFR. While 3800 GAR coal is offering at USD 45/MT, CFR Kandla port.
[su_quote]Another West Coast based importer highlighted, “In India few buyers are moving ahead with the price hike, even though there prompt cargo bookings, the numbers are limited.” Ready to sell offers at ports[/su_quote]
Indian trader’s stock & sale offers at ports have turned up sharply on the wake of recent price hike.
• 4200 GAR material is being available at INR 4,400-4,500/MT at Navlakhi and Kandla port (all duties and clearance included, VAT & CST will be added further).
• Indonesian 3800 GAR coal at Kandla port is offering at INR 3,750-3,800/MT.
• High CV Indonesian 5000 GAR is being available at INR 5,600/MT at Paradip port.
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