Some miners in Indonesia's East Kalimantan region have been deferring loadings of thermal coal cargoes by seven to 10 days amid rains, sources said Friday.
Several vessels are being diverted to East Kalimantan from South Kalimantan, which is leading to a vessel queue, an Indonesia-based trader said.
The situation in South Kalimantan had seen little improvement due to the ongoing crackdown on illegal mining, which has resulted in the closure of several jetties, he said, adding: "It's only getting worse."
As attention from buyers shifts to East Kalimantan, thermal coal miners there have reportedly raised their offer prices for various grades of coal, he said, adding that availability of coal was also tight for prompt loading.
Most of the miners in South Kalimantan had sold their cargoes completely for April, especially 4,200 kcal/kg GAR coal, and those who still had cargoes to sell were offering them at $45/mt FOB, which was "not a reasonable price."
A Singapore-based trader reported a deal for a cargo of Indonesian 4,200 kcal/kg GAR coal at $41.80/mt FOB, without giving further details. Platts could not immediately confirm this deal.
However, the Indonesia-based trader said that once the rains subside, which is expected by the end of the month, production activity could return to normal, and supply could be eased.
An India-based trader said although the miners in East Kalimantan had not declared force majeure on shipments, they had sent requests to customers seeking deferral of cargo loading by up to 10 days.
He said the miners were facing some logistical issues as floating cranes were not widely available and loading equipment at some of the miners had broken down due to rains.
Indonesian 5,900 kcal/kg gross-as-received thermal coal for loading in the next 90-day period was assessed by Platts at $75/mt FOB, down 40 cents from Thursday, while 5,000 kcal/kg GAR Indonesian coal for the same delivery period was assessed at $59.40/mt FOB, unchanged on-day.
Indonesian thermal coal with a CV of 4,200 kcal/kg GAR for loading in the next 7-45 days was assessed at $42/mt FOB, down 10 cents on-day, and 3,800 kcal/kg GAR coal for the same period was pegged at $35.60/mt, unchanged on-day.
CHINA INACTIVE
Chinese buyers remained on the sidelines on Friday due to the two-day Qingming holidays, leaving delivered and domestic prices unchanged from Thursday.
Fewer bids and offers were heard during the Asian trading session due to the holidays in China.
Seaborne-traded thermal coal for delivery to south China ports in the next 15-60 days was assessed by Platts at $82.25/mt CFR basis 5,500 kcal/kg NAR, unchanged from Thursday.
FOB Qinhuangdao 5,500 kcal/kg NAR coal was assessed at Yuan 512, also unchanged from Thursday.
The Singapore-based trader said he was offering Newcastle 5,500 kcal/kg NAR coal with maximum ash of 23% to Chinese buyers at $73/mt FOB, while buying interest was at about $70-71/mt FOB.
However, he said Indonesian 5,500 kcal/kg NAR coal was still being quoted higher than Newcastle material, and the former should trade at about $72/mt FOB.
A second Singapore-based trader said such cargoes were being sold by major miners in Indonesia, who usually had term contracts with buyers, but if they had any spot cargoes to sell, they would look for more value.
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 days at $73.40/mt, unchanged from Thursday.
