Coal news and updates

India thermal coal: Weak buying interest expected till Sept

Indian thermal coal buyers were in no hurry to conclude deals and any uptick in buying interest could only be expected after the monsoon season ends, sources said Tuesday.

An India-based trader said the spot market was largely dormant. "It seems as if people are just not interested to buy," he added.

A Supramax cargo of Indonesian 4,200 kcal/kg GAR coal was being offered at around $36/mt FOB but there were no takers, he said.

He was also offering a Supramax cargo of 5,500 kcal/kg GAR Indonesian coal for September loading at $58/mt FOB but there were no counter bids.

A second India-based trader said he expected Indian demand to pick up after September when the monsoon season ends.

An India-based end-user source said buyers were only procuring on an as-required basis with a flurry of offers in a "buyers' market."

He said most of the demand was for 4,200 kcal/kg GAR coal and some deals were getting concluded at around $45-46/mt CIF east coast India.

Indian bids for 4,200 kcal/kg GAR coal are at $45/mt CFR east coast India, an Indonesia-based producer source said.

A Capesize cargo of Chilean 4,100 kcal/kg GAR coal with 20% ash and 20% total moisture was being offered at $50.50/mt CFR Krishnapatnam on the east coast of India for September arrival, as heard through broker Marex Spectron.

On FOB basis, offers for 4,200 kcal/kg GAR Indonesian coal were ranging from $35.50-36/mt for September loading. However, the India-based end-user source said Indonesian miners were aiming for an increase of $0.50-$1/mt for November and December parcels.

SOUTH AFRICAN COAL

The first Indian trader said he was offered a Capesize cargo of 5,500 kcal/kg NAR South African coal at $73/mt CFR east coast India for end-August arrival, but he was skeptical about concluding a deal as he expected prices to decline in the near term.

The second India-based trader said 5,500 kcal/kg NAR South African coal was being offered at around $80-81/mt CFR east coast India on Panamax basis but buying interest was at around $74-75/mt CFR.

Platts assessed the 30-60 day prices for CFR India East 5,500 kcal/kg NAR coal at $75.45/mt and CFR India West at $76.30/mt, both up 20 cents on the day.

A third trader said there was a perceived tightness for South African 5,500 kcal/kg NAR in India with offers seen at around $62-63/mt FOB. He estimated the delivery price into east coast India at $75-76/mt CFR for Panamax cargoes.

The third India-based trader said that because of high South African prices, Indian buyers were looking at Australian 5,500 kcal/kg NAR.

The second Indian trader echoed this view, saying Australian 5,500 kcal/kg NAR was competitive and it had more demand on the east coast. He pegged the CFR price on Panamax basis for Australian coal at around $71-72/mt.

Source: Platts