Indonesian Non-Coking Coal: Prices Edge Down Amid Subdued Asian Demand

Indonesian mid-high calorific value thermal coal prices continued to trend lower, on competitive delivered prices for South African coal of similar heating value, while Indonesian high-CV coal proved difficult to sell as Russian offers are more competitive.

Indonesian low-CV coal also traded at decreased levels, as smaller miners with prompt cargoes continued to decrease offer prices citing weak buying interest for lower rank coals considering their high moisture content.

In addition, the overall import demand from the traditional Asian countries has remained subdued so far this year – due largely in part to China’s import limitation – offsetting incremental gains from emerging Asia.

Meanwhile, Indonesia’s thermal coal supply is expected to outpace demand in the near term, with several major miners planning to increase production, potentially leading to lower average selling prices.

India’s seaborne buying interest is expected to stay tepid until September, as buyers are heard adopting a wait-and-watch stance because they are well stocked due to their active pre-monsoon restocking in Q2 2019.

PRICE ASSESSMENTS

N.B.: All prices are in USD/MT and for delivery within 30 days by Supramax vessel class with cargo intake of 55,000 MT.