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India thermal coal: Delivered 5,500 NAR pressured by Australian offers

Delivered-India prices for 5,500 kcal/kg NAR coal remained under pressure as availability of cheaper Australian coal attracted Indian buyers, sources said Wednesday.

Platts assessed the 30-60 day prices for CFR India East 5,500 kcal/kg NAR coal at $74.65/mt and CFR India West at $75.50/mt, both unchanged on the day.

Australian 5,500 kcal/kg NAR coal competes with South African material currently but this might be "temporary", an India-based trader said.

There are plenty of stocks of South African coal at Indian ports being sold at $79-80/mt CFR to buyers who procure 5,000 to 15,000 mt parcels, a second India-based trader said.

He said Capesize cargoes of Australian 5,500 kcal/kg NAR could be bought at about $67-68/mt CFR and $70-71/mt CFR for Panamax parcels.

He said a cargo of Australian 5,000 kcal/kg NAR coal was recently sold to India at $61/mt CFR India, but did not give additional details.

Indian enquiries for 5,500 kcal/kg NAR coal have been strong in the past few months, he said, adding that he had bought a Panamax cargo of Richards Bay 5,500 kcal/kg NAR coal at $76-77/mt CFR India and the vessel is discharging currently.

INDONESIAN OFFERS

An Indonesia-based trader said Indian bids for 5,000 kcal/kg GAR coal were coming in at $56/mt on a delivered basis. However, he said not many suppliers were willing to lower their prices to those levels currently.

A Dubai-based trader said offers for Panamax cargoes of 4,200 kcal/kg GAR coal were at $48/mt CFR east coast India for loading in September. However, there was no buying interest at this level, he added.

Offers for an August loading Supramax cargo of 4,200 kcal/kg GAR coal were at $45-46/mt CFR east coast India, while bids were at $44/mt, a second India-based trader said.

"Given the Supramax freight rates from Indonesia to east coast India at $9/mt, deals could happen at $44-45/mt CFR ECI," he said.

An India-based trader said Supramax cargoes of 4,200 kcal/kg GAR coal were being offered at $47-48/mt CFR India, pegging Supramax freight rates from Indonesia to east coast India at about $9-10/mt.

An Indonesian miner said an Indian buyer was looking for Supramax cargoes of 5,400 kcal/kg GAR coal at $61/mt CIF east coast India but counter offers were not immediately available.

Source: Platts