Indonesian coal prices continue to plunge on less buying interest globally. Current spot offers again witnessed a drop of USD 1-2/MT, FoB for Jan’17 loadings.
Indonesian coal offers continue to fall on the grounds of lack of buying interest from India coupled with uncertain trade activities by Chinese buyers. Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 36-37/MT, FoB for Jan’17 loadings. 3,800 GAR coal is being offered at USD 31/MT, FoB. While high CV 5,000 GAR is available for Jan’17 end shipments at USD 55/MT, FoB Kalimantan.
Owing to sharp rise in Indonesian coal offers earlier, resulted in shift in buying interest from imports to domestic coal in India.
In India, CFR offers for 4,200 GAR are heard at USD 45/MT at West Coast ports for Jan’17 loadings. Low CV Indonesian 3,800 GAR is offering at USD 39/MT, CFR. While 5,000 GAR is available at USD 63/MT, CFR.
[su_quote]Mentioned by an Indian trader, “At present buying inquires have come down from India owing to demonetization issue amid rise in domestic coal supply. Despite, few inquiries is heard for low CV coal in Jan’17. Meanwhile, buyers and sellers both are at wait and watch mode.”[/su_quote]
Ready to sell offers at ports
On the other side, falling import offers and cash crunch in the domestic market have been hampering the coal stock and sale business in India. Meanwhile, ready to sell material offers have declined sharply at ports as compared to last month.
At present about 0.5 MnT Indonesian coal stocked material is available at West Coast ports.
•Indonesian 4,200 GAR coal is offered at INR 3,900-4,000 stock and sale at Kandla and Mangalore port (all duties and clearance included, VAT & CST will be added further).
•5000 GAR material is available at INR 5,100/MT at Kandla port (taxes will be added further).
•Indonesian 3800 GAR coal at Kandla port is offered at INR 3,600/MT. While old material of 3400 GAR is available at INR 3,100/MT at Magdalla port.
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