Indonesian coal prices have continued to increase amid production cut due to rain and limited cargo availability.
Coal miners have been struggling to meet their production target and loading schedule because of heavy rains which are affecting buying sentiments, also the fasting month of Ramadan has contributed to the operation cuts.
While, buying interest for 4200 GAR coal were heard at USD 39-40/MT FoB for June cargoes, spot prices for 4200 GAR coal were assessed at USD 41/MT FoB Kalimantan; hence traders who had shipments were holding back on increasing prices.
4200 GAR coal was in demand particularly; as a result coal price had gone up by USD 2-3/MT from USD 38/MT FoB assessed last week. 3800 GAR coal was assessed at USD 34-35/MT, FoB Kalimantan for end June and early July loadings.
The prices of mid-CV grades have also risen, although supply was not as tight compared to low-CV coal. However, Rising Australian coal prices affected the rise in Indonesian mid-CV coal prices.
Buying interest for end-June or July shipments of 5000 GAR coal was at USD 53-54/MT FOB, while offers were around USD 55-56/MT FOB, Kalimantan.
Moreover, Indonesian Coal Index (ICI 1, 6500 GAR) increased by 3% W-o-W to USD 79.33/MT this week compared with USD 76.41/MT in the preceding week.
Indian Market Scenario:
Indian coal buying from Indonesian spot market is slowed down because of the monsoon season that cause ports on the west coast to close.
At present, 4200 GAR coal is assessed at USD 47-48/MT, CFR India. While 3800 GAR coal is trading at USD 41-42/MT, CFR India.
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