Offers for Indonesian coal to India have reached their bottom since the beginning of current fiscal. The prices have been driven by reducing consumption in China and over supply in the global market.
Indonesian coal, which is mostly preferred by Indian power plants, is still under pressure and is being offered at its lowest level. Currently 4200 GAR coal is being offered at USD 37/MT CFR East Coast ports for July’15 delivery; offers have fallen for all lower GCV imported material. Meanwhile, few traders are offering 3800 GAR coal at USD 34/MT East Coast ports.
Adani Enterprises, one of the biggest traders in India highlighted, “Currently the company is offering about 30,000 MT stock and sale material of Indonesian 4600 GAR coal at INR 4200/MT at Paradip Port. VAT and CST will be calculated further. Prices of Indonesian 4200 GAR grade material and below declined due to lack of buying interest in the market.”
Indonesian coal which comprises of about 80% of India’s total import is currently offered at its bottom owing to low buying interest, as well as hard negotiations from Indian buyers. At present, Indian ports have stocked enough and as such there’s no aggressive buying of the material. Also increased domestic availability along with ongoing monsoon is influencing buyers and they are resisting purchase of imported grade in large quantity.
Indonesian Grade Stock and Sale Offers at East Coast Ports:
1. Indonesian 3800 GAR (5500 GCV KCAL/Kg) coal is being offered at INR 2650/MT.
2. 4200 GAR is being offered at INR 2950/MT to be delivered in July’15.
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