Indonesian thermal coal portside prices remain largely stable w-o-w

• Indian demand dull amid high inventories
  
  
• Chinese buyers stock up ahead of holidays
  
  

Indonesian port-side thermal coal prices remained largely stable this week. Portside sentiment at Navlakhi Port was positive on lower stocks, sources informed BigMint.

Specifically, prices of the 3400 GAR coal at Navlakhi inched up by INR 50/tonne (t) to INR 4,550/t. At Kandla and Vizag, prices of the 4200 GAR increased by INR 50/t to INR 5,950/t and INR 5,850/t ex-port respectively. Additionally, prices of the 5000 GAR at Kandla and Vizag ports also remained stable at INR 7,900/t and INR 7,800/t, respectively.

Indian thermal coal demand is dull, and the reason is attributed to high domestic stock levels and reduced power consumption due to the ongoing rainfall. Current coal stocks at Indian power plants are sufficient for a few days of operation, with some plants facing critical stock issues.

Key factors influencing Indonesian thermal coal prices

• Indonesian indexed prices of high-CV (5800 GAR) coal were recorded at $93.19/t, up by $0.05/t. Mid-CV (4200 GAR) coal prices increased by $0.26/t to $51.75/t, while low-CV (3400 GAR) coal prices were recorded at $31.55/t, up by $0.20/t. All prices are on an FOB basis.
  
  
• In the Chinese domestic market, buyers were actively procuring ahead of the Golden Week holidays starting from 1 October, although offers were reigning at a higher level. Most Chinese buyers have completed their cargo procurement, leading to a slowdown in market momentum. The impact of China's recent stimulus measures aimed at boosting the economy remains uncertain, with traders watching for potential demand shifts in industrial sectors.
  
  
• In Indonesia, offers for low grade GAR are observed to be falling but still maintaining the indexed prices. Due to rainfall, material is difficult to transport, resulting in compromised quality of material and drop in prices.