Indonesian coal prices has remained constant due to the week long Chinese national holidays. Limited trading was seen from the buyers as prices remained almost unchanged from the previous week.
Indonesian Index Price for 6500 GAR increased USD 0.55/MT this week to USD 98.06/MT. Index for 4200 GAR coal increased by a mere USD 0.02/MT while index for 5000 GAR coal remained unchanged at USD 67.26/MT.
Lower Offtake level by Chinese Plant utilities during the holidays raised coal stock inventories at the Qinhuangdao port to 6.74 MnT on 2 Oct’17. Coal stock then dipped to 6.64 MnT on 8 Oc’17, but was still 22% higher from the month earlier.
Moreover, Domestic coal producers in China had also cut their spot prices in order to stabilize coal offers as instructed by Chinese government.
The rising inventories at ports and the reduced domestic coal prices will eventually reduce aggressive coal Imports from the China and in turn will keep Indonesian price rise stable.
Chinese national development and planning agency had earlier instructed Power utilities to ensure sufficient coal supplies for the winter season, in order to avoid vigorous increase in spot coal prices.
Spot Offer for Indonesian 5000 GAR coal was 67/MT, FoB Kalimantan , while for 4200 GAR coal it was assessed at USD 47/MT, FoB Kalimantan.
On the hand, Indian buyers were expecting Indonesian coal prices to soften in the absence of enough offers from China. But Indonesian miners retained their offers to gain more profit as their coal production remain affected by bad weather this year.
Offers were heard at USD 75/MT, CFR India for 5000 GAR coal, while 4200 GAR coal prices was quoted USD 55/MT, CFR India.
Indonesian Benchmark Coal Price:
Indonesian benchmark price has continued its rising trend to reach new high for the CY17. Index Price was set at USD 93.99/MT for Oct’17 at 2.13% higher M-o-M.
Indonesian index coal price is used as the basis for determining prices of 77 Indonesian coal products as well as the calculation of the royalties. The Index price has now reached the highest level since Dec’16. However, if we exclude that month, then the current coal price is at highest level since Jun’12.
Leave a Reply