Indonesian coal prices have continued on its rising trend as bad weather condition affects coal production.
Coal prices have increased marginally this week. However, an Indian trader quoted that even a price rise of 25 cent cannot be considered as stable, adding that coal prices are increasing USD 2/MT every month and are likely to remain firm till the end of the year.
Offer for 5000 GAR coal was assessed at USD 67/MT, FOB Kalimantan. While for 4200 GAR and 3800 GAR coal it was assessed at USD 47/MT and USD 38/MT, FoB Kalimantan this week.
High coal prices are supported by lower coal production. Indonesian miners which were already looking to ramp up their production to clear previous backlogs were facing difficulties in coal mining due to continuous rainfall.
Moreover, lower domestic coal availability in China has pushed buyers to import more Indonesian coal. Increasing safety checks at mines have kept thermal coal supply constrained in the country; as a result buyers have turned to Indonesian coal market to meet their demand for upcoming winter season.
In India, demand for Indonesian coal has gathered pace as stocks at power still remained low. A West Coast based trader told that the stock and sale market is going on well and quoted offer for 5000 GAR coal at INR 5200/MT (Compensation Cess and GST charge to be added extra) at Mangalore port; and for 3800 GAR coal at INR 3300/MT.
While CFR prices for 4200 GAR and 3800 GAR coal were assessed at USD 55/MT and USD 46-47/MT respectively.
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