Coal news and updates

Some low and mid-cv grades of Indonesian thermal coal edged 10-20 cents/mt lower in Asia trade due to lack of buying from China, but Indian inquiries for cargoes after the monsoon season increased, sources said on Tuesday.

 

Platts assessed the price for 4,700 kcal/kg NAR thermal coal (CCI 7) delivered to ports in South China in the next 30-60 days at $60.80/mt, down 20 cents day on day. Platts launched the new price assessment Monday.

 

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $36.90/mt, unchanged, and FOB Kalimantan 3,800 kcal/kg GAR at $31.10/mt, down 10 cents from Monday.

 

Platts also assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $54.80/mt, down 20 cents from Monday, and FOB Kalimantan 5,900 kcal/kg GAR coal at $66.80/mt, unchanged.

 

A Beijing-based trader said that he recently traded a Panamax cargo of branded Indonesian 4,700 kcal/kg NAR at $53/mt FOB for late-July loading, and $1 lower than an offer for the same delivery period a day earlier. Freight on Panamax vessels on the Taboneo to Xiamen coal route was quoted by traders at $6.40/mt and to Fangcheng port it was $6.30/mt.

 

A gearless Panamax cargo of 4,700 kcal/kg NAR, minimum of 4,500 kcal/kg GAR, for July loading was heard offered at $55/mt FOB via energy broker firm Ginga Petroleum.

 

A Singapore-based trader said that a Capesize cargo of 4,700 kcal/kg NAR was being offered to China at $60/mt CFR. He placed the freight rate from Taboneo to Fangcheng port in south China at $5.40/mt.

 

A source at a major mid-cv Indonesian producer said they had received more inquiries for August/September-loading cargoes of 5,000 kcal/kg GAR from their Indian customers. However, the $1.50-2/mt spread between bids and offers kept deals from materializing.

 

He said their Indian buyers' bid price for a gearless Panamax cargo of 5,000 kcal/kg GAR offered at $56/mt FOB was around $54-54.50/mt FOB.

 

"We can't sell at that value," he said, adding that their supply was tight due to lower production this year.

 

He said that compared with last year the company's production was down by 1 million mt to 22.5 million mt this year.

 

The Singapore-based trader said that an offer price for a Supramax cargo of 5,000 kcal/kg GAR for July loading was at 54.50/mt FOB.

 

An India-based trader said that Indian demand had been limited by the monsoon rains, but he expected the revival of demand post-monsoon to be aided by the bullishness on the new government's commitment to improve infrastructure for power generation.

 

He said that offers for Supramax cargoes of 3,800 kcal/kg GAR for June/July loading were at around $31-32/mt FOB, "but buyers are ready to buy at $31/mt FOB." The Singapore-based trader agreed that price for this grade had been slipping to $31/mt FOB.

 

The India-based trader said that a Supramax cargo of single-mine 4,200 kcal/kg GAR from East Kalimantan for June/July loading was being offered at $37/mt FOB, while a Supramax cargo of 5,000 kcal/kg GAR was priced at $54-54.50/mt FOB.

 

He added that June/July-loading Supramax cargoes of 4,400 kcal/kg GAR and 4,800 kcal/kg GAR were being offered at $42/mt FOB and $46-47/mt FOB, respectively.

 

The Singapore-based trader placed the fair market value of Indonesian 5,500 kcal/kg NAR coal at $66.50-67/mt FOB.

 

 

Source: http://www.platts.com/