Indonesian Thermal Coal Prices Continue on a Downtrend

Indonesian coal offers are still under pressure; influenced highly by Indian sluggish demand and slowdown in global consumption.

Indonesian thermal coal offers reached their bottom at the end of May’15 and still continue a down trend even as July begins. As per weekly assessment, prices have again seen a marginal decline in this week and currently Indonesian 4200 GAR is assessed at USD 37/MT CFR East Coast Indian ports in Supramax vessel for July shipments. Meanwhile, other imported Indonesian grade 3800 GAR and 5000 GAR is being offered at USD 35/MT and USD 50/MT respectively, CFR India for Supramax shipments in July.

Indian Coal import in June’15 from Indonesia had touched 10.1 MnT; down 16.6% against last month’s import owing to ongoing monsoon. It is expected that Indonesian Thermal may dive more in coming months as persisting  oversupply and low demand put pressure on sellers to come out with low prices.

At present, about 60,000 MT imported material of Indonesian 4600 GAR coal is being offered by Adani at INR 3900-4000/MT at Dhamra and Paradip ports. The price includes all duties and clearance (VAT/CST will be added further).

Indonesian Grade Stock and Sale Offers at East Coast Ports:

1. Indonesian 4600 GAR (5800 GCV KCAL/Kg) coal is being offered at INR 3900-4000/MT at Dhamra and Paradip ports.
2. Indonesian 4200 GAR coal, highly preferred by Indian power plants, is being offered at INR 2800-2900/MT at Vizag Port.
3. Indonesian imported grade 3800 GAR and 5000 GAR coal is offered at INR 2600-2650/MT and 3600-3700/MT respectively (all duties and clearance included) at Vizag Port.

Indonesian Coal Supply Increased marginally to India in Q1 FY16

In the first quarter of FY16, the country has shipped about 34.3 MnT of coal and registered a growth 2% compared to same quarter of last fiscal, which was at 33.5 MnT.

Indonesia, world’s one of the largest coal suppliers to India, fulfillng about 80% imported requirements of the country, increased its supply by 24% to 142 MnT in FY15, which was 114 MnT in FY14.

Quantity in MnT
Source: SteelMint

Indonesian Coal Expected to Arrive at Indian Ports

As per SteelMint analysis, about 4 MnT of Indonesian coal is anticipated to arrive at various Indian ports by the 2nd week of July’15. Adani Enterprises, Coastal Gujarat Power, JSW Steel and Essar Steel are expecting capesize vessels at Dhamra, Mundra, Jaigad and Bedi ports. Bhatia, Agarwal and Swiss Singapore are also importing 74,000 MT, 71,000 MT and 89,700 MT Indonesian coal at Krishnapatnam, Navlakhi and Kandla ports respectively.