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India: Indonesian portside coal prices remain stable w-o-w

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Non Coking
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8 Nov 2024, 18:53 IST
India: Indonesian portside coal prices remain stable w-o-w

  • Weak demand in India amid sufficient domestic supply

  • Stockpiles in China, rainfall in Indonesia impact trades

Indonesian thermal coal market remained silent, with key players such as China and India holding off on significant new purchases. Inventory pile-ups in China, sufficient domestic supply in India, and an unfavourable weather forecast were all contributing factors.

Meanwhile, Indonesian coal producers are seeing limited domestic demand too, with rainfall-related logistical disruptions affecting supply. Traders continued to focus on long-term contracts rather than short-term restocking, and spot prices were under downward pressure in several markets.

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

In India, market participants were in a festive mood, which resulted in firm offers. Another contributing factor was heavy rainfall in south India. Buyers also stuck to their earlier bids, and ultimately, no correction was seen in the Indonesian non-coking coal index.

In China, market participants sought cheaper prices, as the country is well-stocked for the remaining period of the year. As a result, there is little immediate demand for restocking.

Meanwhile, Indonesian prices of high-CV (5800 GAR) coal were recorded at $93.93/t, up slightly by $0.8/t. Meanwhile, mid-CV (4200 GAR) coal prices decreased by $0.10/t to $52.32/t, and low-CV (3400 GAR) was recorded at $32.37/t, down by $0.09/t. All prices are on an FOB basis.

8 Nov 2024, 18:53 IST

 

 

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