Supply Tightness Keeps Indonesian Coal Prices High

Indonesian Coal offers again witnessed a hike of USD 2-3/MT this week. There are very few offers available in the market amid strong inquiries.

Strong Chinese demand along with supply shortage in Indonesia, driving Indonesian coal prices to sustain on higher side. Although, heavy rain in the country have also hammering coal operations and supply at present.

Indonesian 4200 GAR, mostly preferred by Indian utilities, is not available for prompt cargo bookings. Indonesian miners and traders are unwilling to offer material because index is continued to rise. While, 4200 GAR is heard to being offered at USD 46-47/MT, CFR West Coast India for Nov'16 loading.

Owing to persistent market hike, Indian buyers are looking for low CV material now. Whilst, 3400 GAR coal is available at USD 33/MT, CFR India for Nov'16 loading. 3800 GAR is assessed at USD 41-42/MT, CFR India and 5000 GAR is at USD 58-59/MT, CFR.

Mentioned by an Indian importer, "There have strong inquires in the market from China and India but there is no offers available for prompt cargo. Traders and miners are holding their offers as waiting for stability in continuous rising index."

Ready to sell offers at ports
On the other side, owing to rising imported offers, Indian buyers those are dealing with stock and sale, preferring low CV coal also stock level have also declined at India ports. To take position over the uncertain coal market is quite risky but seems profitable for traders since couple of months.

o6000 GAR material is being available at INR 5,800-5,900/MT at Vizag port (all duties and clearance included, VAT & CST will be added further).

oIndonesian 3800 GAR coal at Kandla port is offering at INR 3,450-3,500/MT. While old material of 3400 GAR is being available at INR 2,850/MT at Vizag port.