Indonesian thermal coal portside prices remain largely stable w-o-w
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Indonesian thermal coal portside prices remained largely stable this week. While inquiries and demand have increased in the Asian market, especially from China and India, prices have not seen a corresponding rise due to competitive pricing strategies among traders and stubborn buyer resistance to higher offers. Traders in the market have adjusted their offers downward to facilitate transactions, despite the increased demand.
Prices of the 3400 GAR at Navlakhi Port were stable at INR 5,200/t. Prices of the 4200 GAR at Kandla stood at INR 6,300/t ex-port. Meanwhile, prices of the 5000 GAR at both Vizag and Kandla ports also remained largely stable this week.
Indonesian index prices of high-CV (5800 GAR) coal were recorded at $92.22/tonne (t), slightly up by $0.06/t. Indonesian mid-CV coal prices (4200 GAR) inched up by $0.02/t to $52.72/t. However, prices of low-CV (3400 GAR) coal decreased by $0.28/t to $32.83/t. Prices are on FOB basis.
In China, power plants have ramped up inquiries for spot cargoes due to higher coal burn. This uptick is partly in response to rising temperatures and improved energy demand. Southern Chinese power plants are well-stocked due to higher hydropower production, which has tempered the increase in imports despite rising inquiries.
Indian traders and coastal power plants are showing interest in mid-CV cargoes but are cautious, preferring index-linked pricing amid subdued industrial demand during the monsoon season.
On the supply side, Indonesian power plants in the northern region are experiencing low stocks, prompting increased inquiries and purchases to replenish supplies. Weather disruptions in Indonesia have eased, benefiting coal production and logistics, although some domestic power plants are running critically low on stocks due to supply chain issues.
Outlook
The market remains influenced by both seasonal and regional supply-demand dynamics, which are likely to continue shaping price movements in the near term.
