Indonesian coal prices have witnessed significant upside movement this week, after coal trading was affected during the Eid festival.
Commenting on the present scenario of Indonesian coal, an Indian trader had informed that coal miners had a week off for the Eid festival. With steady demand from China, coal prices had surged to significant high levels that may hinder further trades in the coal market. He added that the coal prices are expected to remain firm, but it would be difficult to anticipate to what extent the prices may increase.
Recent media reports had claimed that the Chinese government has reduced restrictions on coal imports at some southern and eastern ports on concerns about higher prices and power shortages. The relaxation in coal import would indeed boost the Chinese demand for Indonesian coal.
The increased power demand for summer season had resulted in high spot coal prices in China during May’18, which had led the NDRC to make 9 measures against the surging domestic coal prices. However, NDRC’s intervention has little effect on controlling prices as demand continued to rise into Jun’18.
Indonesian 4200 GAR coal was offered at USD 50/MT, FoB Kalimantan, against bids at USD 48-49/MT this week. 3800 GAR coal offers was heard at USD 39-40/MT on FoB basis.
Indonesian mid CV and high CV coal prices have also increased to significant levels this week supported by the tightness in coal supply. Offer for 5000 GAR and 5500 GAR coal were heard at USD 71-72/MT and USD 81-82/MT respectively on FoB basis this week. Coal supply was impacted as a result of the bad weather that had affected the coal production in the country.
An Indian trader at west coast had informed that he was quoted 5200 GAR coal at USD 74-75/MT on FoB basis, which he believed was too high for him to import and would rather wait for the prices to fall.
Landed cost of Indonesian 5800 GAR coal was heard at USD 93/MT on CFR basis. 4200 GAR coal was assessed at USD 61/MT, CFR India.
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