Indonesian Steam coal offers strengthen by USD 1-2/MT on an average this week. 4200 GAR coal offers seems more attractive among domestic and international buyers.
Presently, rise in indigenous requirements along with strong demand from China attributed a notable support to Indonesian coal prices. Indonesian coal offers rose by 3-4% in a week on the wake of supply tightness in the market.
Indonesian 4200 GAR coal which is mostly preferred by India is also on high demand in the Indonesian domestic market. Current offers are heard at USD 29-30/MT, FoB for Aug’16 loadings. While, 3800 GAR coal is available at USD 23/MT, FoB.
Mentioned by an Indian trader, “There is lack of cargo availability in the market (Aug’16 and Sep’16 shipments) for Indonesian coal. In addition selling material domestically is more advantageous to Indonesian miners and traders. Indonesian 4200 GAR coal is being offered at USD 35-36/MT, CFR at Paradip and Gangavaram Port for Aug’16 loadings.”
Also added, offers for Haldia port is bit higher than other ports at USD 37-38/MT, CFR Aug’16 loadings.
In India, traders are offering 5800 GAR coal at USD 53-34/MT, CFR Vizag and Gangavaram Port for all size of bulk vessels. While, low CV 3800 GAR is offering at USD 28-29/MT, CFR India.
Presently in India, ready to sale material of 4200 GAR material is available at INR 3,300/MT at Paradip and Gangavaram Port (all duties and clearance included, VAT & CST will be added further).
It is noted that if Chinese and Indonesian domestic demand continues to remain strong and supply tightness prevails, the Indonesian coal prices would hit more higher by the end of the year.
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