Indonesian Coal offers continue to rally on the grounds of strong Chinese demand. While index have hit its 32 months highest since Feb’14.
Indonesian coal offers are continue to rise on the grounds of ongoing rain and strong Chinese demand. As reported earlier, Indonesian coal market has been booming, it sustaining the rise on Oct-Nov’16 loadings on account of sharp rise in Chinese coal imports and currently persisting supply tightness for few grades.
After a sharp growth of USD 3-5/MT in a couple of weeks, offers have risen again by USD 1-2/MT, FoB in this week.
Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 37/MT, FoB for Oct’16 end 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 end shipments at USD 54-55/MT, FoB Kalimantan.
Since there is a sharp rise in Indonesian coal offers, it not seems feasible for Indian utilities which resulted into shift in buying interest from imported towards domestic coal.
In India, CFR offers for 4,200 GAR are heard at USD 43/MT at West Coast ports for Oct’16 end loadings. Low CV Indonesian 3,800 GAR is offering at USD 36/MT, CFR. While 5,000 GAR is being available at USD 63-64/MT, CFR.
Mentioned by an Indian trader, “At present there are no such inquires have assessed in the market for prompt cargo bookings from India. Buyers and sellers both are holding their bids at wait and watch mode. Indian buyers relatively quit for higher priced current offers.”
In addition, continuous rising international coal offers, coupled with monsoon in India resulted into fall in Indonesian coal imports in Sep’16, which stood at all time low 6.9 MnT with a fall by 12%, compared to Aug’16.
Ready to sell offers at ports
On the other side, owing to rising imported offers, Indian East Coast based traders are eyeing on profit margins and holding coal stock at ports as they are looking to sell material at higher prices.
• Indonesian 4,200 GAR coal is offered at INR 3,700 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).
• Indonesian 3800 GAR coal, which is expected to reach within 2-3 days at Kandla port is offering at INR 3,250-3,300/MT. Whilst old material of 3400 GAR is being available at INR 2,700/MT at Magdalla port.
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