Indonesian thermal coal portside prices exhibit mixed trends w-o-w

The Indonesian thermal coal portside prices for low CV declined and mid to high CV stood stable this week. Market participants are anticipating a recovery in demand from India in the coming weeks as industrial activity ramps up ahead of the festive season.

There is optimism for a boost in industrial demand as the festive season approaches. Notably, India is shifting its preference towards low-CV coal due to more favorable pricing trends.

Specifically, prices of 3400 GAR coal at Navlakhi Port dropped by INR 200/tonne (t) to INR 4,700/t. At Kandla, prices of 4200 GAR coal remained stable at INR 5,900/t ex-port. Additionally, prices of 5000 GAR coal at Kandla and Vizag ports also remained stable at INR 7,900/t and INR 7,800/t, respectively.

Key factors influencing Indonesian thermal coal prices

• Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $93.14/t, increase by $0.72/t. Mid-CV (4200 GAR) coal prices increased by $0.58/t to $51.49/t, while low-CV (3400 GAR) coal prices were recorded at $31.35/t, up by $0.19/t. All prices are on an FOB basis.
  
  
• In the Chinese domestic market, traders expect prices to rise as China is actively purchasing coal again. Additionally, the domestic prices of Chinese coal have been increasing, maintaining competitive import prices. Recovery in cargo movement as some deals were concluded from market participants from China as prices have been low and freight for Supramax vessel is also firm.
  
  
• Indonesian coal producers are more active in the spot market following the reopening of transportation routes, and experiencing increased activity, particularly driven by Chinese buyers responding to higher coal consumption.