India: Portside prices of Indonesian thermal coal remain largely stable w-o-w

• Inquiries for low-CV coal improve
  
  
• Buyers, sellers cautious amid price disparity
  
  

Prices of Indonesian thermal coal at Indian ports remained largely stable this week. In the thermal coal market, buyers and sellers have opted wait and watch owing to lack of urgency to conclude deals.

Notably, thermal or non-coking coal stocks at Indian ports increased by 3% to 12.74 million tonnes (mnt) in week 48 from 12.36 mnt in last week. This was the second week in a row where stocks has been increased, as per BigMint's data.

Prices of 3400 GAR at Navlakhi Port remained steady w-o-w at INR 4,750/tonne (t). At Kandla 4200 GAR dropped slightly by INR 50/t w-o-w at INR 5,900/t and at vizag, 4200 GAR stood stable at INR 5,850/t ex-port. Additionally, 5000 GAR offers at Kandla inched down by INR 50/t w-o-w at INR 7,900/t, and at Vizag, high-calorific value (CV) coal was stable w-o-w at INR 7,800/t.

Slight improvement in demand

The Indian power plants and ceramic industries are running on domestic coal, keeping trade activities minimal. While some demand for low-CV coal is present, buyers are not rushing to secure additional cargoes. Stable supplies and increased domestic stocks in India kept the market sluggish.

An India-based trader stated, "The thermal coal market is stable, trading activities are more or less same. Notably, due to recent development in sponge sector, prices increased yesterday post government announcement on anti dumping duty. This might impact coal demand and prices in near term."

Chinese buyer looking for affordable material

Chinese thermal coal demand remained lacklustre this week. As domestic power plants can sustain operations for over a month based on existing inventories. Some interest were seen for low-CV coal, domestic companies inquiries are driven by affordability.

Trend of Indonesian index

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $94.33/t, up by $0.32/t. Mid-CV (4200 GAR) prices decreased by $0.27/t to $51.84/t, and low-CV (3400 GAR) was recorded at $31.93/t, a fall of $0.32/t. All prices are on FOB basis.

An Indonesian source noted, "India has shown a slight increase in activity, but the Chinese market remains unchanged, with state-owned companies seeking discounts, reflecting a lacklustre market."