Heavy rain fall in Indonesia adding some more support to Indonesian coal prices, even though Dec’16 offers are very tight with limited availability.
Sharp hike within couple of weeks in Indonesian coal prices soften Indian and Chinese buying as demand is subdued. It is noted that Indonesian coal FoB prices have hit 42 month high and increased by about 80% since Jun’16.
The constant rally in prices since the mid of 2016 have mainly driven by supply disturbance and strong import demand by China.
[su_quote]As mentioned by an Indian importer, “the current market is completely unpredictable, prices are too high at the moment and rising constantly despite buyer’s expectation. However, Indonesian 4200 GAR offers have reached at USD 50/MT, FoB which was offered at USD 28/MT, FoB during mid of the year (Jun’16).” [/su_quote]
In Indian Nov-Dec’16 shipments of Indonesian coal heard – 4200 GAR is offered at USD 57-58/MT, CFR Kandla for Dec’16 loading. Low CV 3600 GAR is being offered at USD 44-45/MT, CFR and 5000 GAR is available at USD 83-84/MT, CFR East Coast ports.
The persisting price rally is having a large impact on Indian consumers and traders as both are not ready to take position on this level and this has been resulted in lack of deals in the market.
On the other side port stock level have also declined in India. At the current situation very less inventory is available in the west coast port which is being offered at high cost.
•4200 GAR material is being available at INR 4,500-4,600/MT at Navlakhi and Kandla port (all duties and clearance included, VAT & CST will be added further).
•Indonesian 3800 GAR old material is offered by a trader at Vizag port at INR 3,200-3,300/MT.
•High CV Indonesian 5000 GAR are available at INR 5,600-5,700/MT at Kandla port.
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