The Taiwan Power Company (Taipower), had invited a global tender for the purchase of 560,000 MT of low ash and extra low sulphur sub-bituminous coal on 31 Aug’16 has finalized the bid. The tender was closed on 9 Sep’16.
The company had invited the bid for total 7 panamax shipments of 80,000 MT quantity each but received only 5 shipments offers. According to the sources, the bids received were from Tiger Energy (3 shipments), Energy Man (1 shipment), and Universe Marine (1 shipment). The offer of Energy Man and Universe Marine has been canceled because it was above the maximum price decided by the Taipower.
As per the source, company has purchased only 240,000 MT sub-bituminous coal from Indonesia for Oct’16 to Dec’16 delivery from Tiger Energy at CFR price of USD 71-72/MT, basis 6,322 kcal/kg Gross as Received (GAR).
It is to be noted that Indonesia is surrounded by heavy rainfall due to which coal supply is tight. However, rising demand from China has kept Indonesian coal offer on higher side at USD 35-36/MT for Oct’16 loading for 4200 GAR. However, current offers for 6000 GAR is assessed at USD 62-63/MT, FoB Kalimantan Port.
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