Indonesian coal prices have been on the downtrend after lacklustre demand from both India and China.
Indonesian coal prices continued to move lower due to weak buying sentiments and buyers showing minimal urgency to conclude deals. Coal prices have fallen by USD 2-3/MT on the weekly basis.
Thermal coal demand in China has decreased as they look for hydropower generation during the rainy season, in addition, healthy coal stock levels at China’s northern ports has contributed to the fall in coal demand from China.
High CV 5000 GAR was offered for USD 59-60/MT, FoB Kalimantan. 4200 GAR was assessed at USD 40/MT, FoB Kalimantan and Low CV 3800 GAR was assessed at USD 36/MT, FoB Kalimantan for May Loadings.
Variation in Price Correction of Different Coal Grades:
Price correction to date has not been steep for Indonesian high-CV coal( 5800 GAR) compared with mid-CV 4200 GAR coal, because of limited availability of high CV material in spot material.
While 5800 GAR coal prices have fallen by USD 1/MT on the weekly basis, 4200 GAR coal prices have fallen by USD 3/MT during the same period.
Indian Market Scenario:
Indian buyers have remained quiet as most of them have sufficiently stocked coal before the monsoon period. Also, buyers were cautious in concluding deals at this level, waiting for prices to become stable.
CFR Price for 5000 GAR coal was assessed at USD 69-70/MT in West Coast India. 4200 GAR coal was priced at USD 48-49/MT, CFR West Coast and 3800 GAR at USD 42/MT, CFR West Coast India.
Stock and Sale Offers:
In West Coast Kandla port, 5000 GAR coal was offered for sale at INR 5200/MT loaded to the truck. While 4200 GAR coal was offered at INR 4400/MT.
At Mangalore port, little amount of 5000 GAR coal was up for sale as most of the material was presold. 5000 GAR coal was offered at INR 5500-5600/MT.
Offers for 4200 GAR coal was INR 4400/MT and that for 3800 GAR coal was INR 3800/MT loaded to truck at Mangalore port.
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