Some thermal coal buyers were turning to larger Indonesian miners to secure shipments amid uncertainty surrounding the new export license regulation in Indonesia, sources said Thursday.
"CCOW miners can offer at high levels but there is a fair chance of getting the cargo on time. But for IUP miners the delivery becomes doubtful. Buyers are willing to pay 50 cents extra for the safe mines," an India-based end user said.
Coal contract of work (CCOW) holders are mainly major Indonesian miners that produce about 70% of Indonesia's coal production, while Izin Usaha Pertambangan (IUP) holders are producers operating relatively small mines.
Offers for September-loading Supramax cargoes of 4,200 kcal/kg GAR coal from IUP mines were at $36.50-36.90/mt FOB he said, adding the offer for the same grade from a CCOW miner would be around $1/mt higher.
"We always buy from reputed miners as the quality and delivery is assured. In the current situation, it is better to buy from them as the upcoming new export license regulation would affect small-midsized miners the most," a China-based end user said.
He bought September or early October loading Panamax cargo of 4,200 kcal/kg GAR coal with 0.2%-0.5% sulfur at $37/mt FOB. The offer for the same was at $37.50/mt FOB, he said.
An offer for a September-loading, Panamax cargo of 4,200 kcal/kg GAR coal was at $37/mt FOB, an Indonesia-based trader said.
LIMITED DEMAND FOR MID-CV
"We are trying to sell for September and October loading but enquiries are very low," a second Indonesia-based trader said, referring to coal with medium heating value.
He is offering second-half September-loading Supramax cargoes of 5,000 kcal/kg GAR coal at $52/mt FOB, with bids at $51-51.50/mt FOB.
"Prices would be steady for 5,000 kcal/kg GAR coal the rest of the year," the China-based end user said. Offers for September-loading Panamax cargoes of 5,000 kcal/kg GAR coal were at $51, while bids were at $50/mt FOB, he said.
Offers for September-loading Supramax cargoes of 5,000 kcal/kg GAR coal with 1% sulfur and 5-6% ash were at $51-52/mt FOB, the India-based end user said, while bids were at $50.50/mt FOB.
He added that he bought a September-loading Supramax cargo of 5,600 kcal/kg GAR coal with 1.6% sulfur at $57.15/mt FOB.
"There is hardly any demand for high CV coal at the moment. I am using this grade for blending purposes," the second Indonesia-based trader said.
He is offering a September-loading Supramax cargo of 5,800 kcal/kg GAR coal with 1.3% sulfur at $64/mt FOB, but did not receive any counter bids.
Offers for September-loading Panamax cargoes of 5,800 kcal/kg GAR coal with 1-2% sulfur were at $64/mt FOB, the India-based end-user said.
Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $36.50/mt Thursday, down 10 cents on the day and FOB Kalimantan 3,800 kcal/kg GAR at $30/mt, stable on the day.
Platts also assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $50.50/mt and FOB Kalimantan 5,900 kcal/kg GAR coal at $63.60/mt, both unchanged on the day.
