India: Indonesian portside coal prices remain stable

• Demand likely to pick up after Diwali
  
  
• Chinese buyers opting for need-based bookings
  
  

Indonesian portside thermal coal prices remained rangebound this week. Thermal coal market participants have adopted a cautious approach amid sufficient stock at power plants and limited buying activity, particularly in China and India.

Prices of the 3400 GAR at Navlakhi increased by INR 100/t to INR 4,700/t. However, at Kandla and Vizag, prices of the 4200 GAR stood stable at INR 5,950/t and INR 5,850/t ex-port respectively. Additionally, prices of 5000 GAR at Kandla remained flat at INR 7,950/t while at Vizag Port high-CV coal remained stable at INR 7,800/t.

Market participants are witnessing limited imports at the portside this week due to approaching Diwali festival, sources informed BigMint. It is expected that demand from Indian coastal power plants will further improve in winter, and inquiries are expected to resume from November after the Diwali festival.

In China, market participants are focusing on on-demand purchases, with many tenders getting cancelled due to weak power consumption. This cautious approach has resulted in spot activity remaining sluggish, with offers often falling short of buyer expectations.

Indonesian miners are maintaining prices largely unchanged from last week. However, interest in mid- and high-CV coal remains limited due to higher prices and reduced availability resulting in a significant bid-offer gap. Offers for low calorific value (CV) cargoes have dropped this week due to mining production increasing significantly.

Indonesian prices of high-CV (5800 GAR) coal were recorded at $93.8/t, up by $0.05/t. Mid-CV (4200 GAR) coal prices increased by $0.09/t to $52.31/t, while low-CV (3400 GAR) was recorded at $32.29/t, up by $0.15/t. All prices are on an FOB basis.