Coal buying from China slowed down this week as market participants wait for clarity from the ongoing Congress meeting.
Limited Coal availability in China because of the increased safety checks in mines had encouraged buyers to look for cheaper in import market. However, after the National Congress session, coal production is expected to improve as mine safety checks are likely to be relaxed.
Chinese 5500 NAR coal assessed over Yuan 700/MT FoB Qinhuangdao, was way past the government’s limit of Yuan 600/MT hence government’s intervention was expected in order to get the prices stabilised.
However, An Indian trader commented, coal buying from China is expected to remain steady ahead of the winter period, and is likely to be slowed down only when they raise their coal production in Dec’17.
However, lower buying had pushed down coal offers this week. Offer for 4200 GAR coal was assessed at USD 46.5/MT, FOB Kalimantan for geared vessel. While 3800 GAR coal was assessed at USD 37-38/MT this week.
Offer for high sulphur content 5500 GAR coal was assessed at USD 73/MT, FoB Kalimantan. 5000 GAR coal was priced at USD 67/MT, FoB.
Indian Market Scenario:
Indian power plant utilities facing scarcity of coal were active in the market however their buying expectation was very low.
Current offers for 5000 GAR coal was heard at USD 77/MT, CFR India. While offer for 4200 GAR and 3800 GAR coal were hear at USD 57/MT and USD 48-49/MT, CFR India respectively.
Stock and Sale Offers:
An Indian Trader had quoted stock and sale offer for 5000 GAR coal at INR 5900/MT (GST to be added) in Mundra port.
Offers for 4800 GAR coal was INR 4950/MT, for 4200 GAR coal was INR 4150/MT and for 3800 GAR coal it was around INR 3650/MT at West Coast. (All prices are basic; GST, Compensation cess and TCS to be added extra).
Leave a Reply