Coal news and updates

Chinese market sees room to import low-CV Indonesian thermal coal

Indonesian thermal coal suppliers were seeing some room for low-CV coal to be imported into the Chinese market, due to low domestic prices that had priced out seaborne cargoes of mid- to high-cv coal, sources said on Monday.

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $36.25/mt, unchanged from Friday, and FOB Kalimantan 3,800 kcal/kg GAR at $30/mt, down 10 cents from Friday.

Platts also assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $50.20/mt and FOB Kalimantan 5,900 kcal/kg GAR coal at $65/mt, both unchanged from Friday.

An Indonesia-based trader said he had seen some demand for 3,800 kcal/kg NAR -- 4,200 kcal/kg GAR -- in China, as this grade was being used for blending purposes.

A Singapore-based trader said 4,700 kcal/kg NAR was being offered into China in the low $50s FOB, however, very few deals were happening due to limited inquiries. "Best to sell 3,800 kcal/kg NAR," he said.

This source said production of Indonesian 4,200 kcal/kg GAR coal remained healthy and suppliers would rather sell the stockpiles than let it self-combust. He said he had seen this grade offered into China at around $36.50/mt FOB.

A Supramax cargo of 4,200 kcal/kg GAR for end-July or August loading was being offered at $37/mt FOB, as heard through broker Marex Spectron.

The Indonesia-based trader said they were offering a Panamax cargo of 4,000 kcal/kg GAR for August or September loading at $36-37/mt FOB.

A Singapore-based broker said there was an offer for 3,800 kcal/kg GAR at $31.50/mt FOB, "but no one is buying this grade." He said he has a firm buying interest for a Supramax cargo of 3,200 kcal/kg GAR for August loading at $21/mt FOB.

A Supramax parcel of 3,400 kcal/kg GAR for August loading was heard offered at $25/mt FOB through broker Marex Spectron.

Little Indian demand for mid-cv coal An India-based trader said there was hardly any buying interest for Indonesian 5,000 kcal/kg GAR coal, which was being offered at $51-52/mt FOB.

"There is so much coal available in the market, even the Ramadan period [when mining operations slow] did not support prices," the Singapore-based broker said.

Market sources said many Indonesian coal suppliers would be off for the Eid holidays in the coming weeks until early August, thus slowing operations at mining sites.

Source: Platts