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Indonesian Thermal Coal Prices Steady Amid Slow Spot Trade

Coal News - Published on Thu, 11 Jul 2019

Image Source: SteelGuru
Argus reported that Indonesian physical coal prices were little changed, although details began to emerge that a Chinese utility may have awarded a tender for low-calorific value material at a lower price compared with another utility tender. State-owned utility Guodian was today heard to have awarded tenders for several grades of Indonesian coal for its power plants in eastern China's Jiangsu province for delivery from early August to early September. These included a geared Supramax GAR 4,200 kcal/kg cargo that was heard to have been awarded at a price that nets back to USD 35 per tonne on a fob basis.

Market participants said that fellow state-owned Chinese utility Huaneng yesterday awarded August cargoes to several western and Chinese trading firms. Some of its yuan-denominated awards for geared Supramax cargoes of GAR 4,200 kcal/kg coal to Shanghai netted back to roughly USD 35.35-35.60 per tonne on a fob Indonesia basis.

Trade in the Indonesian spot market was slow today and some market participants said prices could begin to come under pressure again, given current weak demand. Prices of GAR 4,200 kcal/kg coal have found some support recently from short-covering by traders that participated in the recent Chinese utility tenders.

Bids for August-loading GAR 4,200 kcal/kg Supramax cargoes were at around USD 35.35-35.50 per tonne today, with offers at USD 36.40 per tonne. Bids for September shipments of the same coal were at USD 35.15 per tonne and offers were at USD 36.40 per tonne.

Trade in the ICI 4 derivatives market was also slow today, with bids and offers were broadly stable compared with yesterday. July ICI 4 derivatives contracts were bid today at USD 35.75 tonne and offered at USD 36.25 per tonne, while August contracts were bid and offered at the slightly lower prices of USD 35.40 per tonne and USD 36 per tonne respectively.

In the Australian market, a 60,000 tonne September-loading cargo of NAR 5,500 kcal/kg coal was sold at USD 53 per tonne fob Newcastle. The price was up from Argus' most recent price assessment on 5 July at USD 51.96 per tonne fob Newcastle. There was an unconfirmed bid for an August Capesize vessel at an even higher price.

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Posted By : Ratan Singh on Thu, 11 Jul 2019
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