India: Indonesian portside thermal coal prices stay firm as trading activity increases

• Chinese buyers initiate winter restocking activities
  
  
• Recovery in demand influence portside cargo movement
  
  

Indonesian portside thermal coal prices have remained supported this week. Portside sentiments were seen improving amid rising demand and lower stock levels, sources informed BigMint.

Prices of the 3400 GAR at Navlakhi remain stable at INR 4,550/t. 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 stood stable at INR 7,950/t and at Vizag Port the high-CV variety remained stable at INR 7,800/t.

In India, coal demand and enquiries increased as some coastal power plants are also expected to undertake some stocking ahead of the demand surge expected around Deepawali. Also, increased requirements from the ceramic industries was notices. Thus, increased cargo movement has been seen at the portside.

In the Chinese domestic market, buyers have returned post-holidays. Additionally, Chinese power plants continue to seek Indonesian low-to-mid CV coal, yet high stock levels have tempered the urgency for spot imports. Asian thermal coal prices have seen an uptick, driven by increased demand from China as buyers engage in winter restocking.

On the supply side, despite some logistical challenges faced by miners in Indonesia's Central Kalimantan and Sumatra regions due to low water levels, there have not been any significant price increases. Overall, market fundamentals appear stable with limited supply adjustments anticipated in the near term

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $93.51/t, inching down by $0.09/t. Mid-CV (4200 GAR) coal prices increased by $0.27/t to $52.34/t, while low-CV (3400 GAR) was recorded at $32.20/t, up by $0.29/t. All prices are on an FOB basis.