Indonesian steam coal offers descending regularly by USD 2-3/MT since mid Nov’16.
Indonesian coal prices are moving down persistently on the wake of quiet Chinese buying interest. While, spot buying is also lukewarm and purchase are waiting for market stability. Miners and traders have cut their offers but still not getting market acceptance as there is huge gap between buying and offer bids.
An Indian Importer Commented, “Global buyers and end users are not willing to take position on the given volatility as there is speculation that market will go down more in near-term. On the other side buyer’s enquiries have fallen since couple of weeks which is largely driven by Chinese buying interest. Moreover, buyers are waiting for some stability in the market now.”
At present Indonesian 4,200 GAR coal, highly preferred by Indian and Chinese utilities are offering at USD 42-43/MT, FoB for Dec’16 loadings. 3,800 GAR coal is being offered at USD 35-36/MT, FoB. Whilst high CV 5,000 GAR is available for Dec’16 shipments at USD 62/MT, FoB Kalimantan.
In India Dec’16 shipments of Indonesian coal is heard – 4200 GAR is offered at USD 50/MT, CFR Kandla for Dec’16 loading. Low CV 3800 GAR is being offered at USD 44/MT, CFR and 5000 GAR is available at USD 68-69/MT, CFR East Coast ports.
One West Coast based trader highlighted, “At present low CV coal stock inventory has come down at Indian ports. In contrast, high CV material stock have increased but buyers are more eager to opt low CV in India. Besides, stock and sale is not seems profitable for traders on persistently falling global prices.”
•4200 GAR material is available at INR 4,300-4,400/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 3,900/MT. While 3400 GAR is available at INR 3,300/MT at Mangalore port.
•High CV Indonesian 5000 GAR are available at INR 5,500/MT at Mangalore port.
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