Indonesian thermal coal portside prices in India remain stable w-o-w

Indonesian portside thermal coal prices remained stable this week. Portside sentiments were heard recovering due to rising demand and lower stock availability, sources informed BigMint.

Prices of the 3400 GAR coal at Navlakhi remained stable at INR 4,550/t. At Kandla and Vizag, prices of 4200 GAR stood stable at INR 5,950/t and INR 5,850/t ex-port respectively. Additionally, prices of 5000 GAR at Kandla inched up by INR 50/t at INR 7,900/t and at Vizag port high-CV remained stable at INR 7,800/t.

According to sources, market dynamics are shifting, as evidenced by a rise in prices for lower calorific value coal outpacing those of mid-CV coal. This trend suggests that when trading resumes, buyers may prefer mid-CV coal.

In India, demand fundamentals remain stable. However, buying inquiries are expected to increase soon, especially with declining coal stocks at power plants.

In addition, the thermal coal market is experiencing dull trading activity, with sellers maintaining high price offers based on anticipated demand, particularly from China. As Chinese traders return from the Golden Week holiday, expectations are that demand will increase, particularly for thermal coal as winter approaches.

In the Chinese domestic market, buyers were out of the market due to ongoing holidays from 1-7 October. Additionally, recent economic stimulus measures in China aimed at bolstering the property sector may further drive demand for coal in construction.

On the supply side, in Indonesia, offers of high grade GAR are rising compared to low grade GAR still at stable levels. Indonesian miners are holding firm on their high offers, anticipating renewed demand from China next week.

Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $93.60/t, inched up by $0.41/t. Mid-CV (4200 GAR) coal prices increased by $0.26/t to $52.07/t, while low-CV (3400 GAR) coal prices were recorded at $31.91/t, up by $0.36/t. All prices are on an FOB basis.