Indonesian coal market saw limited trading from buyers as they wait further correction in coal offers following China’s NDRC notice to monitor coal supply and price movements.
China’s National Development and Reform Commission (NDRC) had warned coal companies to refrain themselves from anti competitive behavior in order to ensure stable coal supplies and prices ahead of the peak coal demanding winter season.
The commission has ordered local authorities to conduct regular inspection to monitor activities relating coal trading and at ports, and to track coal stock and prices for irregularities, including manipulation. The commission is set to send team of inspectors in major coal producing regions for compliance.
Coal companies have also being reminded not to misuse their dominant position to sell coal at unfair prices. Also to hold back from speculations and bidding up spot offers to gain higher profits, failing to which the companies might be black-listed in Chinese media.
The guidelines by NDRC if followed properly would lead to stable Chinese domestic coal prices, and eventually halt aggressive buying of Indonesian coal from them. This would help Indian buyers to procure Indonesian coal at lower price, unless weather condition worsen and significantly affects coal production there.
Coal offers for Indonesian 5000 GAR coal was heard at USD 65-66/MT, FoB Kalimantan. 4200 GAR and 3800 GAR coal was assessed at USD 45-46/MT and USD 36-37/MT respectively, FoB Kalimantan.
For Indian Buyers, these offers translate into USD 76/MT, CFR India for 5000 GAR coal. 4200 GAR coal offers were at USD 56/MT, CFR India.
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