Trade Resources Economy Indonesian Thermal Coal Prices Were Stable to Higher on Monday

Indonesian Thermal Coal Prices Were Stable to Higher on Monday

Indonesian thermal coal prices were stable to higher on Monday with very few deals reported as the market awaits direction from India after the end of its month-long elections later this week, sources said.

"Prices have been more or less flat," a Singapore-based trader said, adding that several buyers are holding back on their procurement plans on uncertainty about the market until the Indian election results are announced.

"It will take about three months following the announcement of poll results before the picture becomes clear," he said

A source at a medium-sized Indonesian miner said several Indian market players were keenly watching the Indian rupee for any sign of appreciation against the US dollar as that would bode well for buyers.

But an India-based buyer said Indian demand may see some rise after the poll results are announced, but this may be offset by the monsoon season as many end-users would have already stocked up by then. The Indian monsoon season typically runs from May to September.

A second Singapore-based trader said he had sold a June-loading Panamax cargo of 3,800 kcal/kg NAR -- or 4,200 kcal/kg GAR -- to a Chinese buyer at about $39/mt FOB.

He said Chinese buying interest for May and June has picked up as Chinese end users need low grade coal with low sulfur for blending. The typical sulfur requirement from buyers is at 0.6-0.8%, he added.

A gearless Panamax cargo of blended 5,000 kcal/kg GAR was being offered into China for end-May loading at $56.50/mt FOB, but bids are at $53-54.50/mt FOB, he added.

The source at a medium-sized Indonesian miner said he heard of a Supramax cargo of single mine 4,700 kcal/kg NAR -- or 5,000 kcal/kg GAR -- for May loading reportedly sold to China at $56.50/mt FOB.

Most Chinese buyers were merely "testing the market" for 5,000 kcal/kg GAR coal, but serious buyers were willing to pay $55-56/mt FOB, he added. An India-based trader said Indian demand has been slow.

A gearless Panamax cargo of 4,200 kcal/kg GAR for early May loading was being offered at $38/mt FOB, he said, but counter bids were not available.

Although there were no firm bids and offers being heard for 3,800 kcal/kg GAR, he said $32/mt FOB would be a "good price" for this grade.

The India-based buyer said offer prices for Panamax cargoes of 4,200 kcal/kg GAR were at $45-46/mt CFR while Supramax parcels of 3,800 kcal/kg GAR coal were offered at $43-44/mt CFR India, he said.

He estimated Panamax freight rates from South Kalimantan to the west coast of India at about $9-9.20/mt and about $8.50/mt to the east coast. Supramax freight from South Kalimantan to the east coast was at about $11/mt, he added.

A Dubai-based trader said there had been several inquiries for 5,500 kcal/kg GAR coal from India.

A Supramax cargo of Indonesian 5,500 kcal/kg GAR coal for end-May loading was offered at $60/mt FOB. A geared cargo of single mine 5,000 kcal/kg GAR for May loading was also being offered at $56/mt FOB, he added.

The first Singapore-based trader said he was offering a geared Supramax cargo of 5,800 kcal/kg GAR for May loading at $68/mt FOB, without counter bids.

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $37.25/mt and FOB Kalimantan 3,800 kcal/kg GAR at $31.60/mt, both unchanged from Friday.

Platts assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $55.50/mt, up 25 cents from Friday, and FOB Kalimantan 5,900 kcal/kg GAR coal at $67.25/mt, up 15 cents from Friday.

Source: http://news.chemnet.com/Chemical-News/detail-2309811.html
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Indonesian Thermal Coal Prices Stable to Higher, Waiting Direction From India
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