Indonesian coal spot offers again witnessed a drop of USD 1-2/MT, FoB Jan’17 shipments, compared to last week.
Post witnessed a sharp hike in early Nov’16, now the Indonesian steam coal offers have been correcting since couple of weeks. On the wake of slowing global demand, the Indonesian price curve have been moving down on regular basis.
Meanwhile slow trade activities in the global market led prices into downtrend. Moreover, coal spot buying is lukewarm and purchase are waiting for market stability.
At present Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 38/MT, FoB for Jan’17 loadings. 3,800 GAR coal is being offered at USD 32-33/MT, FoB. Whilst, for early shipments in Jan’17 high CV 5,000 GAR is available for at USD 57/MT, FoB Kalimantan.
[su_quote]An Indian Importer Commented, “Suddenly buying inquirers have increased from India for Jan’17 loadings but not received much bookings as huge gap between buyers and seller bid in the market. While, market speculation on falling prices also deterring buyers to make decision.”[/su_quote]
In India Jan’17 shipments is heard – 4200 GAR is offered at USD 47-48/MT, CFR Mangalore and Vizag port. Low CV 3800 GAR is at USD 41/MT, CFR and 5000 GAR is available at USD 65-66/MT, CFR West Coast ports.
[su_quote]One West Coast based trader highlighted, “At present there is enough inventory of Indonesian coal is present in the Indian ports. But lack of cash in the market is hampering the stock business in India. Also added, owing to demonetization many small consumers of coal have been running under capacity now. [/su_quote]
On the other side constant falling global prices have curbed the profit margin in stock and sale business in India.
•4200 GAR material is available at INR 4,200/MT at Mangalore and Kandla port (all duties and clearance included, VAT & CST will be added).
•Indonesian 3800 GAR old material is offered by a trader at Kandla port at INR 3,600/MT. While 3400 GAR is available at INR 3,000/MT at Mangalore port.
•High CV Indonesian 5000 GAR are available at INR 5,100/MT at Mangalore port.
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