Coal news and updates

India closing deals for Indonesian coal, more deals expected this week

Indian buyers have been in the market for Indonesian thermal coal this week, and were heard to close deals for several sub-bituminous cargoes starting delivery in late February, with more transactions expected later this week, a Singapore-based trader said.

One Indian buyer was understood to have closed a deal Monday for three 50,000 mt cargoes of 4,800 kcal/kg GAR of Kalimantan coal at $49/mt FOB, with the first cargo loading this month, the trader said.

A second trader reported hearing a deal in India for 50,000 mt of Indonesian blended coal with a calorific value of 5,000 kcal/kg GAR for February loading at $56.50/mt FOB.

"Lots more" deals for Indonesian thermal coal were expected to be finalized in India this week, he said.

A second Singapore-based trader said Indians appeared to be taking the opportunity to buy cargoes in a subdued market.

Chinese buyers were not expected to be in the market this week because of the Lunar New Year celebrations and their return was expected next week, he said.

A Dubai-based trader said 5,000 kcal/kg GAR Indonesian coal from a single mine was being offered in India at $59/mt FOB, and a counter bid was heard at $57.50/mt.

FOB bids and offers in India for Kalimantan coal with a calorific value of 4,200 kcal/kg GAR were heard $38 and $39/mt, respectively, he said.

For 3,800 kcal/kg GAR coal, FOB bids and offers were $31.50 and $33/mt, respectively, he said.

A third trader in Singapore estimated FOB bids for 5,000 kcal/kg GAR coal from Kalimantan at $55/mt FOB on board a geared Panamax vessel and at $56.50-$57/mt on a gearless Panamax.

A Jakarta-based coal trader said ongoing rains in Kalimantan were causing slight delays in transporting coal from mines to jetties because of poor road conditions.

Platts assessed the daily 90-day price for FOB Kalimantan 5,000 kcal/kg GAR coal at $56.50/mt, up 10 cents on the day, while the assessment for FOB Kalimantan 5,900 kcal/kg GAR coal was $70.10/mt, unchanged on the day.

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $38.25/mt, up 10 cents on the day, while for FOB Kalimantan 3,800 kcal/kg GAR coal the assessment came out at $31.60/mt, unchanged on the day.

Source: Platts