Indonesia’s coal market is cooling off amid searing summer as Chinese buyers are holding back purchases, traders said.
Offers for 4200 GAR Indonesian coal have come down to USD 45-47/MT, from USD 49/MT in previous weeks.
“I think Chinese buyers are backing for a while to cool down. When the prices drop, they will return,” said a trader in Jakarta. “Demand should be up because it’s summer. If they buy now, the prices will go up, so they will wait until the price come down,” he said.
An Indian trader said he has received an offer for prompt cargo of 4200 GAR at USD 46.75/MT for geared supramax and USD 47.75 for gearless supramax.
“Prices have come down a lot mainly because of China,” he said.
The Jakarta-based trader said India is still on the market but not buying at a quick rate. “It’s Chinese that can move the market,” he added.
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