In the 4,700 kcal/kg NAR market for China, September-delivery Panamax Indonesian cargoes were offered at $52-52.50/mt FOB, but Chinese bids remained low at only about $50-51/mt FOB, according to Chinese traders and Ginga Petroleum Friday.
"Local power plants are only ready to pay about Yuan 405/mt [$65.85/mt including 17% VAT] CFR for 4,700 kcal/kg NAR Indonesian thermal coal," a Guangdong-based trader said. "We can only take such material below $50/mt FOB," he added.
Elsewhere in the Chinese seaborne market, buying interest on this grade of imported thermal coal was heard at $55-56/mt CFR South China to selling interest at $57.50/mt, said market sources in China.
A Guangdong-based trader heard an offer for a Panamax cargo of 5,000 kcal/kg NAR Indonesian coal for September delivery was $61/mt CFR South China but buying interest for this cargo was not available.
This would equate to a selling price at $57.30/mt CFR South China on a 4,700 kcal/kg NAR basis, according to Platts' calculations.
Addressing the possible impact of a ban on imports of thermal coal with a sulfur content of more than 0.6%, the trader in Guangdong was dismissive: "Actually, in some areas, there have already been some unofficial restrictions," he said. "For example, in Guangdong, we do not import [coal with] sulfur over 1%."
Indonesian thermal coal is very low in sulfur content and typically below 1% on an as-received basis.
At Qinhuangdao port in north China, domestic 5,500 kcal/kg NAR thermal coal prices were a touch lower on trades at Yuan 469/mt and Yuan 470/mt FOB.
For 5,000 kcal/kg NAR material there were trades at Yuan 410/mt for standard Shanxi grade, and at Yuan 407/mt for 0.8% lower sulfur coal, said market sources.
At the close of Asia trade, the Platts/Fenwei China Coal Index (CCI 1) for domestic thermal coal traded at Qinhuangdao port was assessed at Yuan 469.50/mt inclusive of VAT, and down Yuan 0.5 on day.
For 5,000 kcal/kg NAR domestic thermal coal (CCI 2), the price was assessed at Yuan 409.50/mt and Yuan 0.5 lower on day.
The CFR South China CCI 7 price for imported cargoes of 4,700 kcal/kg NAR thermal coal was assessed at $57/mt, and steady from Thursday.
