Indonesian coal prices saw downward correction this week as demand from China decreased.
Indonesian coal which remained on the higher side for most parts of last month has shown indication of downward correction as prices have started to fall this week.
Thermal coal demand in China has decreased as they look for hydropower generation during the rainy season, plus improving weather in Indonesia has helped to increase coal production thereby enhancing coal availability.
Improved availability of coal has caused prices to fall by USD 1/MT, High CV 5000 GAR was offered for USD 62-63/MT, FoB Kalimantan while low CV 4200 GAR was assessed at USD 44-45/MT, FoB Kalimantan for April loadings this week.
Indian market Scenario:
Indian buyers normally looking for cargos during this period of the year to stock coal ahead of the monsoon season were waiting to see a fall in price.
However, Improvement in coal supply of low CV 4200 GAR would spur buying from the Indian utilities, as offer price from India is not expected to be competitive in the next quarter because of the monsoon season.
Currently, 5000 GAR coal is available at USD 71-73/MT CFR India, while low CV 4200 GAR and 3800 GAR material are offered at USD 56/MT and USD 45-47/MT CFR West Coast India.
Stock and Sale Offer at Ports:
Stock and sale offer for 5000 GAR material is assessed at INR 5600-5800/MT at West Coast ports, 4200 Gar coal is offered an INR 4500-4700/MT(including all taxes) loaded to truck.
3800 GAR material is offered at INR 3500/MT in West Coast Mangalore Port and at INR 3700/MT in Dharamtar port.
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