5300 GCV Indonesian coal is being offered at $39/MT FOB Tanjung Pemancingan, South Kalimantan. This indicates a further decline in indonesian steam coal prices.
Coal inventories at key power plants in China remain high, increasing by 5.4 mn tons from end April to 88.9 mn tons on 20 May, sufficient to generate power for the next 26 days (normally 15-17 days). However at current price levels also, experts are of view that “gas remains cheaper than coal”.
Mr. Rohit Sharma from Oceans Five Inc, a trader based in Kolkata opined that “scenario for imported material might improve by the end of the month as domestic coal may be scarcely available as monsoon sets in at other parts of the country”.
Freight on coal from Indonesia to East Coast India has gone up slightly by $0.50/MT to reach $11.00/MT.
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