Falling Indian bookings owing to monsoon along with firm Indonesian coal offers since a month has weighted upon current buying sentiments of India.
Indonesian steam coal prices remain firm this week; also heard 4200 GAR coal offers at USD 28-28.5/MT, FoB for Jul’16 shipment. At present, demand in India and China seems to be dull because of increase in prices and high sea freight market, which is driving global buying sentiments.
Moreover, Indonesian coal offers are still at higher level, although supply tightness and festive season (Ramadan) may provide more support to spot prices shortly, which may set buying expectations a bit higher.
Currently, spot cargo availability is tight, majorly 4200 GAR coal, which is largely preferred by Indian buyers is in scarcity. Meanwhile in India, current offers for 4200 GAR and 3800 GAR coal are assessed at USD 34-35/MT and USD 28-29/MT, CFR Kandla Port for Jul’16 loadings respectively.
A source mentioned, “Indonesian coal prices continue to stay firm till the end of festival Ramadan. On the other side, India’s buying weaken as they have enough stock and not in rush to buy. Also, Indian buyers are considering more discount on the given offers and yet to decide whether to accept surged offers or not.”
At Indian West Coast ports, traders are offering 3600 GAR coal at USD 27/MT, CFR Kandla for Jul’16 loadings. While, Indonesian high CV material 5000 GAR is available at USD 48/MT, CFR East Coast ports.
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