Indonesian coal offers have been rising significantly as they are driven by strong Chinese demand. Only few Indian buyer are active in the market.
Indonesian Thermal grade coal shows a steepest price rally since last couple of months. Prices are on upward trend and currently trade for 4200 GAR coal is witnessed at USD 31-33/MT, FoB for September loadings. In addition, lack of cargo availability also persist in the market for Sep’16 shipments.
Reason behind increase in prices comprises of mines closer in Indonesia and production cut in China which has resulted in sudden rise in Chinese coal demand for imported grades.
In India, CFR offers for 4200 GAR heard at USD 38-39/MT at West Coast ports for Sep’16 loadings. Low CV Indonesian 3800 GAR is offering at USD 31-32/MT, CFR. While 5000 GAR is being available at USD 46-47/MT, CFR.
[su_quote]Mentioned by an Indian trader, “In context to India, only few Indian buyer are active in the market and ready to go with the offers and rest are still confused for near term market outlook. Although Indian buyers are more focused on Domestic coal.”[/su_quote]
Also added, only handful of Indian buyers are rising their bid to opt Sep’16 cargo where most of the cargoes are sold out for Sep’16 loadings.
[su_pullquote align=”right”]Another west Coast based trader highlighted that, “on the wake of constantly rising Indonesian coal offers, Indian traders are holding their coal stock at ports as they expects prices to go up and are interested to sell material at higher prices than purchased earlier. All the available materials was purchased earlier at USD 3-4/MT less prices.” [/su_pullquote]
Indonesian Coal offers at Indian Ports
• Indonesian 4200 GAR coal is offered at INR 3,300-3,400 stock and sale at Kandla port (all duties and clearance included, VAT & CST will be added further).
• 3400 GAR is being available at INR 2,500-2,600/MT at Kandla. While, 3800 GAR is offering at INR 2,700/MT at the same Port (taxes will be added further).
• High CV 5000 GAR coal is being offered by West coast based trader at INR 4,000/MT stock and sale at Kanda port.
Moreover, currently market is entirely China driven, as China is taking advantage of low Indian bids which are still hovering at USD 30.5-31/MT where China is ready to pay USD 33/MT for the same grade.
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