India: Portside prices of Indonesian thermal coal stable w-o-w amid ample supplies

• India continues to rely on domestic coal
  
  
• High CV indexed prices fall on low demand
  
  

Prices of Indonesian thermal coal at Indian ports remained firm this week, influenced by ample supply, despite a sluggish global market, stemming from weak industrial demand in both China and India.

Notably, thermal coal stocks at Indian ports increased by 4.3% to 12.36 million tonnes (mnt) in week 47 from 11.85 mnt in week 46, as per BigMint's data.

Prices of 3400 GAR at Navlakhi Port remained flat w-o-w at INR 4,750/tonne (t). At Kandla and Vizag, 4200 GAR stood stable w-o-w at INR 5,950/t and INR 5,850/t ex-port, respectively. Additionally, 5000 GAR offers at Kandla remained unchanged w-o-w at INR 7,950/t, and at Vizag, high-calorific value (CV) coal held steady w-o-w at INR 7,800/t.

India shows limited import interest

This week, Indian power plants continued to rely on domestic coal, and trade activities were predominantly for small volumes. However, despite ample domestic supply, some traders made inquiries for Indonesian low CV coal for industrial users, such as the chemical and textile sectors.

An India-based trader stated, "Weak portside demand has reduced imports. For example, the ceramic industry has not shown interest in procurement, as there has been difficulty in pushing finished goods."

An Indonesian source noted, "Indonesian non-coking coal exports to India are a bit slow at the moment. Meanwhile, Chinese users are still buying at discounted prices."

Weak demand, sufficient stocks dampen trade in China

Chinese thermal coal demand remained soft this week, as domestic power plants maintained stable inflows from term contracts. Winter restocking was minimal, although inquiries for mid-CV coal were heard.

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $94.01/t, up by $0.16/t. Mid-CV (4200 GAR) prices decreased by $0.08/t to $52.11/t, and low-CV (3400 GAR) was recorded at $32.25/t, a fall of $0.12/t. All prices are on FOB basis.

Outlook

The thermal coal market is likely to remain under pressure in the near term, driven by limited industrial demand and sufficient domestic supplies in India and China, the key consuming nations. India's prices will likely remain range-bound.