Chinese holiday has disrupted coal trade worldwide. Indonesian coal offers slips about USD 1-2/MT, CFR India, driven by falling sea freight rates. Persisting situation seems unsupportive to strengthen Indonesian market shortly.
Indonesian coal, CFR India offers continues in its downtrend, tumbling value day on day as CFR offers had been driven by continue falling sea freight rates and limited buying interest in India. In addition, landed cost at Indian ports have dropped at INR 100-200/MT in last 15 days.
Apparently, India-the world’s third biggest importer of coal surged its local output in FY16, mainly, thermal and steam coal which is continue hurting suppliers of that grade in Indonesia. On the other side, Indonesian market is struggling with cheaper alternative supply by South Africa and Australia.
Indonesian Coal offers to India
Current offers for Indonesian 4200 GAR is hovering at USD 31-32/MT, CFR Kandla for Feb’16 loading. Meanwhile, Indonesian 5000 GAR and 3800 GAR is being offered at USD 43.5-44/MT and USD 25-26/MT, CFR at the same port.
A Supramax vessel of Indonesian 3800 GAR is expected to reach Kandla port on 24-25 Mar’16. The material is being offered at USD 25/MT. Also same trader is carrying about 25,000 MT of Indonesian 4200 GAR ready to sell material and is offering at INR 2,700/MT, Kandla.
Various sources mentioned, “Indonesian coal East Coast India offers were firm, from couple of weeks owing to moderate buying upon slow power demand. Indonesian 4200 GAR and 3800 GAR coal is offering at USD 31/MT and USD 25.5/MT, CFR Paradip port for Mar’16 delivery.”
Also, about 40,000 MT of 4400 GAR Indonesian grade is offering at stock and sale at INR 3,200-3,300/MT, Paradip port.
Freight for shipping coal in Panamax vessel from Indonesia to India is assessed at USD 4-5/MT. Meanwhile, freight for all size of bulk vessels are in the range of USD 3-7/MT.
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