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Chinese market sees room to import low-CV Indonesian thermal coal

https://www.chemnet.com   Jul 22,2014 Platts
Indonesian thermal coal suppliers were seeing some room for low-CV coal to be imported into the Chinese market, due to low domestic prices that had priced out seaborne cargoes of mid- to high-cv coal, sources said on Monday.

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $36.25/mt, unchanged from Friday, and FOB Kalimantan 3,800 kcal/kg GAR at $30/mt, down 10 cents from Friday.

Platts also assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $50.20/mt and FOB Kalimantan 5,900 kcal/kg GAR coal at $65/mt, both unchanged from Friday.

An Indonesia-based trader said he had seen some demand for 3,800 kcal/kg NAR -- 4,200 kcal/kg GAR -- in China, as this grade was being used for blending purposes.

A Singapore-based trader said 4,700 kcal/kg NAR was being offered into China in the low $50s FOB, however, very few deals were happening due to limited inquiries. "Best to sell 3,800 kcal/kg NAR," he said.

This source said production of Indonesian 4,200 kcal/kg GAR coal remained healthy and suppliers would rather sell the stockpiles than let it self-combust. He said he had seen this grade offered into China at around $36.50/mt FOB.

A Supramax cargo of 4,200 kcal/kg GAR for end-July or August loading was being offered at $37/mt FOB, as heard through broker Marex Spectron.

The Indonesia-based trader said they were offering a Panamax cargo of 4,000 kcal/kg GAR for August or September loading at $36-37/mt FOB.

A Singapore-based broker said there was an offer for 3,800 kcal/kg GAR at $31.50/mt FOB, "but no one is buying this grade." He said he has a firm buying interest for a Supramax cargo of 3,200 kcal/kg GAR for August loading at $21/mt FOB.

A Supramax parcel of 3,400 kcal/kg GAR for August loading was heard offered at $25/mt FOB through broker Marex Spectron.

Little Indian demand for mid-cv coal An India-based trader said there was hardly any buying interest for Indonesian 5,000 kcal/kg GAR coal, which was being offered at $51-52/mt FOB.

"There is so much coal available in the market, even the Ramadan period [when mining operations slow] did not support prices," the Singapore-based broker said.

Market sources said many Indonesian coal suppliers would be off for the Eid holidays in the coming weeks until early August, thus slowing operations at mining sites.

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