Indonesian non-coking coal prices at Indian ports hold steady amid weak market sentiments

• Holiday season results in selling pressure
  
  
• Frequent CIL auctions add to oversupply
  
  

Indonesian non-coking coal prices at Indian ports remained steady w-o-w due to weak demand. In the domestic market, elevated stock levels amid the year-end holidays led to pressure selling, while reduced urgency in finalising deals resulted in slower trading activity.

Prices of 3400 GAR coal at Navlakhi Port remained stable w-o-w at INR 4,700 per tonne (t). At Kandla and Vizag, 4200 GAR coal prices held steady at INR 5,900/t and INR 5,750/t, respectively. In contrast, 5000 GAR prices at Kandla saw a w-o-w decrease of INR 100/t, dropping to INR 7,800/t, while high-calorific value (CV) prices at Vizag fell by INR 50/t, settling at INR 7,750/t.

Non-coking coal inventories at Indian ports saw a slight decline of 1.7%, falling to 13.13 million tonnes (mnt) in week 52, compared to 13.35 mnt in week 51, according to BigMint's data.

India extends full capacity operation mandate for imported coal-based power plants until Feb'25

India has extended the mandate for imported coal-based power plants to run at full capacity until 28 Feb'25. The move comes amid slower electricity demand and increased solar power usage, leading to a 31.8% y-o-y drop in thermal coal imports in Oct'24. Despite this, coal-based power generation rose 5% y-o-y in Apr-Sep'24.

Frequent CIL auctions add to oversupply

The frequent auctions conducted by CIL have contributed to an oversupply of coal in the market, further intensifying the bearish sentiment. With an increased supply of coal available through these auctions, market conditions have been affected by the imbalance between supply and demand, leading to downward pressure on prices and a slowdown in trading activity. An Indonesian source indicated that clarity in trade activities should emerge by next week.

Indonesia index inches down w-o-w

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $89.52/t, down $1.23/t. Mid-CV (4200 GAR) prices decreased by $0.06/t to $49.97/t, and low-CV (3400 GAR) was recorded at $30.75/t, a fall of $0.18/t. All prices are on FOB basis.