Indonesian Steam coal offer moved up by USD 1-2/MT, FoB this week on the wake of supply tightness for prompt cargo availability.
Despite reduced buying interest in Indian and China, Indonesian coal prices continues to move up further. Indonesian coal offers again witnessed a rise by USD 1-2/MT on current week. On the other side, rising sea freight rates is also added some more burden on CNF trade.
Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 36-37/MT, FoB for Oct’16 loadings. 3,800 GAR coal is being offered at USD 28/MT, FoB. Whilst, high CV 5,000 GAR is being available for Oct’16 shipments at USD 52-53/MT, FoB Kalimantan.
Mentioned by a West Coast based importer, “it is anticipated in the market that continue price rally may halt shortly as China is going to increase coal production in short term. But offers may continue to sustain on upside.”
Post monsoon, with comparatively low bids, Indian buying interest are picking up slowly for Oct-Nov’16 shipments. Whilst, Indian buying interest are still subdued owing to higher offers.
In India, CFR offers for 4,200 GAR are heard at USD 43-44/MT at West Coast ports for Oct’16 loadings. Low CV Indonesian 3,800 GAR is offering at USD 37/MT, CFR. While 5,000 GAR is being available at USD 60-61/MT, CFR.
Stock and Sale Offers at Ports
• Indonesian 4,200 GAR coal is offered at INR 3,500-3,600 stock and sale at Kandla and Mangalore port (all duties and clearance included, VAT & CST will be added further).
• 5000 GAR material is being available at INR 4,300/MT at Mangalore port (taxes will be added further).
Moreover, the current coal market is entirely China driven, as country is leading the market and willing to pay higher, also upcoming policies and action on coal production and imports will direct market further.
Whereas, India is struggling to negotiate in the upsurge market. Continuous rising international coal offers, coupled with monsoon in India resulted into fall in Indonesian coal imports in Aug’16, which stood at 8 MnT with a fall by 10%, compared to Jul’16.
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