Indonesian thermal coal portside prices remain stable amid low buying interest

Indonesian thermal coal portside prices remained stable this week. In India, imports of spot cargoes are limited as coastal power plants have maintained decent stocks. However, there are enquiries for low-CV coal from overseas. There is anticipation of increased demand post-monsoon in India, leading to continued enquiries by stock-and-sale traders.

Prices of 3400 GAR coal at Navlakhi port were stable at INR 5,200/t. Prices of 4200 GAR coal at Kandla port stood at INR 6,300/t ex-port. Meanwhile, prices of 5000 GAR for both Vizag and Kandla ports also remained stable this week.

Asian thermal coal prices are currently range-bound due to ample stock levels in major importing countries like China and India. The number of bids for new spot cargoes have reduced, which is keeping prices stable. Indonesian index prices of high-CV (5800 GAR) coal were recorded at $91.12/tonne (t), down by $1.21/t. Indonesian mid-CV coal prices (4200 GAR) decreased by $0.48/t to $52.52/t. However, prices of low-CV (3400 GAR) coal increased by $0.67/t to $33.81/t. Prices are on FOB basis.

In China, total coal stocks at major ports have increased indicating a comfortable supply situation. Expansion of Chinese companies has led to increased electricity demand and enquiries for low-calorific value coal. But this has not significantly impacted overall market sentiment.

On the supply side, Indonesian coal producers are holding firm on prices and not lowering offers to match bids, likely due to significant sales under term contracts. Some producers are also targeting sales of particularly low-CV cargoes.

Outlook

There are expectations of seasonal demand uptick and specific regional dynamics affecting enquiries. Overall market conditions remain subdued with prices influenced by ample stocks and cautious buying attitude of importers.