Indonesian Coal Offers remained firm despite road haulage issue being resolved.
Price offers for Indonesian coal remained stable on higher side despite reports that road haulage issue has been resolved. The road haulage issue kept cargo availability tight had resulted in supply tightness and rise in coal prices.
Prices were expected to decline in March, but continuous rainfall in Kalimantan has affected production and kept supply tight moreover steady demand from China has continued to support Indonesian coal price offers.
“Demand for Indonesian coal by Chinese buyers remained stable however the prices have tendency to move higher if demand increases, “commented an Indian trader.
High CV 5000 GAR coal was assessed at USD 60-61/MT, FoB Kalimantan while premium grade 5000 GAR material is quoted at USD 63/MT, FoB. 4200 GAR coal preferred by Indian and Chinese utilities is offered at USD 46-47/MT , FoB Kalimantan while low CV 3800 GAR available at USD 42/MT, FoB Kalimantan this week.
Indian Market Scenario:
Demand for Indonesian coal from Indian buyers has increased for March-April loading as they look to store sufficient coal for Pre-Monsoon stock before the monsoon begins around May.
During monsoon, season operation will be halted in many ports, so traders want to ensure ample coal stock. As evident from the fact that coal imports from Indonesia increased by 13% M-o-M to 7.58 MnT in Feb’17.
In India, offers for 5000 GAR were heard at USD 71-72/ MT, CFR India West Coast. 4200 GAR coal is available at USD 55/MT, CFR India West Coast while that of low-CV 3800 GAR material is assessed at USD 50/ MT, CFR India.
Stock and Sale Offers for 5000 GAR Indonesian coal was assessed at INR 5700/MT while that for 4200 GAR at INR 4400/MT in West Coast Ports.
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