Chinese buyers needing coal promptly would have to pay higher prices currently due to supply constraints created by weather-related disruptions in both Indonesia and Australia, sources said Thursday.
"People who have been caught short are buying at higher prices as offer prices have gone up," a Singapore-based trader said. "No seller in Indonesia would be willing to sell 5,000 kcal/kg GAR below $60/mt FOB on a gearless vessel basis currently."
He also said some deals for Newcastle 5,500 kcal/kg NAR coal had been reportedly concluded at very high prices of $80/mt FOB, but did not provide further details. Platts could not immediately confirm these deals.
"We will see a few deals getting concluded at $80/mt FOB in the short term too," he added, referring to the Newcastle 5,500 kcal/kg NAR coal and the weather-related disruptions in Australia.
Despite the rise in offer prices of 5,500 kcal/kg NAR Australian thermal coal, Chinese buyers have held firmly to their bidding prices of about $83/mt CFR for March-April deliveries.
"I have got some offers of 5,500 kcal/kg NAR Newcastle cargoes at $75-76/mt FOB [prompt loading] but will not consider booking any such material at the moment," a Guangdong-based trader said, adding that his buying interest was no higher than $73/mt FOB or $83-84/mt CFR.
The Guangdong-based trader has secured 4-5 million mt of 5,500 kcal/kg NAR Australian thermal coal and 4,700 kcal/kg NAR Indonesian thermal coal on term contracts for 2013 but has yet to settle the prices.
A mini-Capesize cargo of 5,500 kcal/kg NAR Newcastle coal was being offered at $73.50/mt FOB for March delivery but again has met with little interest due to its high volatile matter content of up to 40%.
"The offer price is not bad, but the high VM content has decreased its competitiveness against similar Indonesian coal," another Guangdong-based trader said.
Instead, the second Guangdong-based trader is looking to buy some 4,700 kcal/kg NAR Indonesian coal at a landed price no higher than $65/mt CFR for February or March delivery.
Platts assessed the FOB price of Newcastle 5,500 kcal/kg NAR thermal coal with typical ash of 20%, normalized from 17-23% and for loading in the next 7-45 day period at $76/mt, up 30 cents on-day.
Platts also assessed the FOB price of Indonesian 5,900 kcal/kg GAR thermal coal for delivery in the next 90-day period at $74/mt, up 25 cents on-day and for 5,000 kcal/kg GAR for the same delivery period at $58/mt, up 40 cents from Wednesday.
The FOB price of Indonesian 4,200 kcal/kg GAR thermal coal for loading in the next 7-45 day period was assessed at $39.70/mt, up 20 cents on-day.
