Indonesia: Portside thermal coal prices steady amid lacklustre demand from India, China

• Higher output in India reduces import inquiries
  
  
• Low-CV coal sees interest from China, India
  
  

The market for Indonesian thermal coal in India and China remained dull, which kept trade volumes lower. However, pricing was relatively steady, with traders noting that while China was actively placing bids, its tough negotiating stance and suppliers' firm offers kept prices within a narrow range.

Prices of the 3400 GAR at Navlakhi inched up by INR 50/tonne (t) w-o-w to INR 4,750/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.

Higher domestic output caps India demand

In India, demand for imported coal was subdued due to higher domestic production, which has kept bids for imported coal on lower side. However, there is still some interest in low-CV cargoes, such as 3,400 kcal/kg GAR.

Coal India Limited (CIL), a Maharatna company, has released its provisional production and offtake performance data for October 2024. Notably, the data indicates that in April-October 2024, cumulative production touched 403.8 million tonnes (mnt), a slight 2.5% y-o-y rise, while offtake increased by a lower 1.5% y-o-y to 428.5 mnt.

Power, cement keep Chinese demand dull

In terms of demand, China's industrial sectors, particularly steel and cement, have not experienced a significant boost despite recent policy stimulus measures. This has led to a preference for only low-CV coal, mainly used for blending at power plants.

Meanwhile, Indonesian prices of high-CV (5800 GAR) coal were recorded at $93.91/t, down slightly by $0.02/t. Mid-CV (4200 GAR) prices increased by $0.02/t to $52.34/t, and low-CV (3400 GAR) was recorded at $32.43/t, up by $0.06/t. All prices are on FOB basis.