Monsoon rains limited Indian buying of Indonesian thermal coal, while lending restrictions muted demand from China, market sources said on Friday.
An Indian end user said buyers had refrained from purchasing imported cargoes because of the monsoon rains, but he expected demand to pick up once the May-September rainy season is over.
An India-based trader said a gearless Panamax cargo of branded, blended Indonesian 5,000 kcal/kg GAR coal was reported sold at $64/mt CFR east coast India for June arrival.
He estimated Panamax freight rates from South Kalimantan to the east coast of India at $8.50/mt, netting back FOB price for this coal to $55.50/mt.
"There are a few enquiries coming in for the third quarter. So we are hoping things will be a bit better," he said.
The India-based end user said the offer price for a Supramax cargo of 3,800 kcal/kg GAR for end-July loading was $31/mt FOB, while a Supramax shipment of 4,200 kcal/kg GAR also for end-July loading was offered at $37-37.50/mt FOB.
Meanwhile, an Indonesian producer said getting letters of credit in China had become a serious problem. He said even state-owned companies were struggling to secure letters of credit.
A China-based trader said that, apart from problems with banks tightening control on credit, the Chinese market has also grown bearish for imported coal because heavy rains in South China had boosted hydropower generation, as well as the high stocks available at ports.
Stocks at the four major Bohai sea ports rose 5.8% to 18.2 million on the week as of June 1, according to Qinhuangdao Port. In Fangcheng, stocks were at 6.2 million mt.
A Singapore-based trader said Indonesian thermal coal could not go into China because miners would not lower their offer price. He said a June-loading Panamax cargo of blended Indonesian 4,650 kcal/kg NAR was offered at $55/mt FOB, while the bid was at $54/mt FOB.
A second Singapore-based trader said the offer price for 4,200 kcal/kg GAR to China was around $37.50/mt FOB, but buying interest was $37/mt FOB.
He also said a 70,000 mt parcel of single mine 4,700 kcal/kg NAR for July/August loading was offered at $57/mt FOB, but no interest was seen.
The Indonesian producer said their offer price for a July-loading Panamax cargo of 5,000 kcal/kg GAR was around $55.50-56/mt FOB.
Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $37.50/mt, unchanged on the day, and FOB Kalimantan 3,800 kcal/kg GAR at $31.30/mt, down 10 cents from Thursday.
Platts also assessed the 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $55.30/mt and FOB Kalimantan 5,900 kcal/kg GAR coal at $67.00/mt, both unchanged on the day.
