Indonesian Steam coal offers jump up this week and has a hit 8-month high owing to shortage of material in the market for prompt cargo bookings.
Global Steam coal market has recovered and Indonesian offers have hit 8-month high. At present, offers have incremented by about USD 2/MT against previous level.
Limited availability of Indonesian coal, rise in domestic demand and supply disruption have moved offers to a higher side. Currently, most of the low GCV material is being consumed domestically owing to a fall in domestic production amid heavy rainfall.
Indonesian 4200 GAR coal is being offered at USD 28/MT, FoB for Jun’16 and Jul’16 loadings, which were within USD 26.5-27/MT at early May’16. While, CFR India offer is assessed at USD 34/MT at West Coast India ports. Meanwhile, high CV Indonesian material 5000 GAR is available at USD 48/MT, CFR East Coast ports.
Source: SteelMint
Prices in USD
At Indian West Coast ports, traders are offering 3800 GAR coal at USD 27.5-28/MT, CFR Kandla for Jun’16 and early Jul’16 loadings.
[su_pullquote align=”right”]A source mentioned, “Indonesian offers heard on higher side, but very few Indian buyers are willing to accept higher rates for further bookings. On the other side, market players anticipate that current rise is temporary; will not continue so far.”[/su_pullquote]
However, in the current scenario, Indonesian suppliers are holding their offers and are waiting for the right market direction. Besides, domestic sales have increased as consumers are willing to pay higher compared to Indian buyers.
Presently in India, ready to sale material of 3800 GAR material is available at INR 2,550/MT at Hazira and Kandla Port (all duties and clearance included, VAT & CST will be added further). While, 5000 GAR is available at INR 3,800/MT, loaded on truck at the same port.
Source: SteelMint
Quantity in MnT
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