Few spot deals for Indonesian thermal coal were reported Wednesday, as Indian buyers opted to purchase from port stocks while Chinese demand remained inactive, sources said.
A Dubai-based trader said he had seen many inquiries from Indian end users, but deals have been "few and far between." He said an increasing number of Indian buyers preferred small lots of low cv thermal coal for blending purposes from traders' stockpiles at ports than cargoes from the import market.
The Dubai-based trader said they purchased a Supramax cargo of 4,200 kcal/kg GAR for June loading at $37.15/mt FOB, and that two to three weeks ago they bought a Supramax cargo of 4,800 kcal/kg GAR for July loading at around $53/mt FOB.
The India-based trader said they concluded a deal for a June-loading Supramax cargo of blended 5,000 kcal/kg GAR at $55-55.50/mt FOB.
He added that offer prices for June-loading Supramax cargoes of 3,600 kcal/kg GAR and 3,800 kcal/kg GAR were at $27/mt FOB and $31-31.50/mt FOB, respectively.
The Dubai-based trader said he had seen an offer price for a Supramax cargo of 3,800 kcal/kg GAR for June loading at $32/mt FOB.
A second India-based trader said many traders have stocked up for the monsoon, and that two to three months ago they bought on a contract basis two to three shipments of 5,000 kcal/kg GAR at $54.50-55/mt FOB.
Coal stocks at major Indian ports rose 4.4% to 9.24 million mt on the week, according to the data released Friday by Indian shipbroker Interocean Group.
A major Indonesian producer said they are offering a Supramax cargo of 4,200 kcal/kg GAR for June loading at $40-41/mt FOB and a gearless Panamax cargo of 5,000 kcal/kg GAR, also for June loading, at $59.60-60/mt FOB.
The source said that while there has been some positive sentiment on Indian demand, Chinese demand has been lackluster.
"Not too sure what will happen actually," he said, citing concerns over China's oversupply of coal, strong hydropower output and the possible ban on low cv coal imports.
A China-based trader said a June-loading Panamax cargo of 4,800 kcal/kg NAR Indonesian thermal coal is being offered at $56.50/mt FOB or some $64/mt CFR southern China, but has aroused scant interest from Chinese buyers.
A Beijing-based trader said a Panamax cargo of 4,700 kcal/kg NAR branded Indonesian coal for June arrival is being offered at $56/mt FOB, but he is willing to buy at $55/mt FOB.
The Dubai-based trader said he heard an offer for a June-loading Supramax cargo of 5,700 kcal/kg GAR at $71/mt FOB.
Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $37.40/mt Wednesday, down 20 cents from Tuesday, and FOB Kalimantan 3,800 kcal/kg GAR at $31.40/mt, down 10 cents on the day.
Platts assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $55.50/mt, down 25 cents on the day and FOB Kalimantan 5,900 kcal/kg GAR coal at $67.25/mt, unchanged from Tuesday.
