Higher offers reported for Indonesian Steam coal amid supply tightness and slowing Indian demand.
Indonesian Steam coal offers are firm this week on the grounds of higher sea freight rates and slowing buying activities in India as the country has restored enough stock for monsoon. Current offers for 4200 GAR heard at USD 26.5-27/MT, FoB Kalimantan Port for Jun’16 end and early Jul’16 loadings.
However, prices are still firm at previous level, although higher freight rates, ended restocking before monsoon deterring Indian’s interest for heavy shipments. On the other side, there have been very limited cargoes available for Jun’16 loading owing to ongoing heavy rain in the country.
At Indian West Coast ports, traders are offering 4200 GAR coal at USD 33-33.5/MT, CFR for Jun’16 loading at Kandla Port. While, Jul’16 loading material is also available at USD 32-33/MT at Mangalore Port.
High GCV 5000 GAR coal is being traded at USD 44-45/MT, CFR at Krishnapatnam Port for further bookings. Meanwhile, low GV Indonesian 3800 GAR is being offered by East Coast traders at USD 25-26/MT, CFR India.
Highlighted by an Indian importer, “Most of the Indian utilities have done with their restocking and plants having enough coal stock to be well fired in monsoon. Whilst, they will back in the market post monsoon. Indonesian coal offers shown some strength now, but may get pressurized shortly owing to less buying in India and higher offers even though cheap alternatives are available from different origins.”
Also added, there is less demand for low CV coal in India, only high CV inquires heard often from Indian consumers.
In India, ready to sale material of 4200 GAR material is available at INR 3,100-3,200/MT at Hazira Port (all duties and clearance included, VAT & CST will be added further). While, East Coast offers are assessed at INR 3,300/MT at Krishnapatnam Port.
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