Indonesian Steam coal offers are firm this week on the grounds of supply tightness, though buying interest is slowing down from China and India.
Owing to lack of buying inquiries from the major countries, Indonesian coal prices have held firm this week. After hitting years of high, Indonesian coal prices have first time witnessed marginally fall yesterday since Jul’16, but still hovering on higher level for Dec’16 loadings.
At present Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 50/MT, FoB for Dec’16 loadings. 3,800 GAR coal is being offered at USD 40/MT, FoB. Whilst high CV 5,000 GAR is available for Dec’16 shipments at USD 74-75/MT, FoB Kalimantan.
Mentioned by East Coast based importer, “it is anticipated that continue price rally may halt and seen some correction shortly in the market as china has increased coal production. But offers are still high for prompt cargo bookings.”
In India Nov-Dec’16 shipments of Indonesian coal is heard – 4200 GAR is offered at USD 58/MT, CFR Kandla for Dec’16 loading. Low CV 3800 GAR is being offered at USD 47-48/MT, CFR and 5000 GAR is available at USD 82-83MT, CFR East Coast ports.
The volatile coal market is having a large impact on end users and traders as both are not ready to take position on the risk market.
One West Coast based trader highlighted, “At present high CV coal stock inventory has come down at ports. In contrast, low CV material have demand at ports in India. While, very less inventory is available in the west coast ports which is being offered at high cost.”
•4200 GAR material is being available at INR 4,500-4,600/MT at Navlakhi and Kandla port (all duties and clearance included, VAT & CST will be added further).
•Indonesian 3800 GAR old material is offered by a trader at Kandla port at INR 4,000/MT. While 3400 GAR is being available at INR 3,500/MT at Mangalore port.
•High CV Indonesian 5000 GAR are available at INR 5,600/MT at Mangalore port.
Leave a Reply