Offer prices for Indonesian thermal coal stayed high, denting buying interest from China.
The recent rally in Indonesian thermal coal prices was expected to continue in the near term as heavy rain and road haulage issues kept spot cargo availability tight. Inclement weather in Indonesia was the main reason for the tightness in supply during the period.
4200 GAR preferred by Indian and Chinese utilities is available at USD 47/MT, FoB Kalimantan, March Loadings. Low CV 3600 GAR is offered at USD 36/MT, FoB Kalimantan, 3800 GAR coal is offered at USD 38/MT, FoB Kalimantan. High CV 5000 GAR is available at USD 61/MT, FOB Kalimantan.
In India, CFR offers for 3600 GAR coal are heard at USD 44/MT, CFR West Coast. 3800 GAR coal is accessed at USD 46/MT, CFR West Coast.4200 GAR is offered at USD 55/ MT, CFR West Coast. While 5000 GAR coal is being offered at USD 69/MT, CFR West Coast.
Indian Market Scenario:
Indian demand for Indonesian coal has been falling recently, as inferred from increasing coal stock at power plants and declining imports from Indonesia.
Combined stocks of thermal coal at 110 Indian power plants rose 4.83% W-o-W to 26.04 MnT on 26 Feb’17, the highest level since Sep ‘16, according to data released by Central Electricity Authority (CEA).
Coal stocks levels at power plants moved beyond 25 MnT mark this month for the first time since September last year. The stocks were also 21% higher on the month compared with Jan’17, but have dropped 25 % Y-o-Y against 36.18 MnT in Feb’16.
Coal imports from Indonesia have fallen by 13% M-o-M from 7.7 MnT in Dec’16 to 6.69 MnT in Jan’17, as state-run Coal India Ltd. has increased production and supply to power plants.
Stock and Sale Offers:
At West Coast Mangalore port, stock and sale offer for 3600 GAR was heard at INR 3,850 while that for 3800 GAR offers were INR 3,700. 4200 GAR was not available for sale, however, high CV 5000 GAR is available at INR 5,750.
3600 GAR material at Kandla port is available at INR 3,500, 3800 GAR at INR 3,700, while 4200 GAR at INR 4,400. High CV 5000 GAR coal prices for sale were heard at around INR 5,400.
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