Indonesian thermal coal especially 4200 GAR whose index price is $71.6/t, FoB basis is now being offered to Indian markets at a premium of $3/t. This makes its CNF price at western port in India at around $100/t (INR 7,400/t) for supramax vessel. On the contrary, the domestic coal of equivalent GCV is being traded at around INR 4,200-4,300/t. Indian power sector has largely shifted to domestic coal this year amid escalated Indonesian coal prices that have escalated amid supply constraints there and surging demand from China.
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