Indonesian coal prices remained stable on higher side amid less buying from Chinese utilities.
Chinese buyers were not willing to participate in the volatile market as they look for prices to come down. Higher Indonesian coal prices were supported by limited coal supply caused by labour crackdown and low cargo availability for shipments.
Indonesian 4200 GAR coal preferred by Chinese and Indian utilities was assessed at USD 45-46/MT FoB Kalimantan, while low CV 3800 GAR offered at USD 41-42/MT FoB Kalimantan for April loadings.
Earlier this week; Indonesian Government had cracked down a local labour union in East Kalimantan which was affecting cargo loading.
The probes have disrupted ship loadings around the port of Samarinda, where around 38 large Coal vessels are sitting idle to take load, with most of them unable to take berth at the port and being forced to take coal via small number of loading vessels.
Demand for 4200 GAR coal was high from both India and China. However, coal miners were focused on delivering delayed commitments, thus having no cargoes available for May loadings.
Indian Market Scenario:
Indian buyers looked to stock coal before the oncoming monsoon period, but high coal prices have hampered buying interest, hence they have shifted towards South African coal to fulfil their demands.
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