Indonesian Thermal Coal Supply Chain Faces New Challenge: Platts.
A few smaller to medium-sized Indonesian thermal coal suppliers were reportedly delaying September-loading shipments indefinitely ahead of the implementation of the export license rule from October 1, sources said Monday. "Some of the big trading companies are postponing their shipments owing to the lack of clarity in the market," said an Indonesia-based trader, referring to the new export license rule.
"We have postponed some of our shipments, which were scheduled for loading in late September until further notice," he said. He further added that he had sold a Panamax shipment of 5,800 kcal/kg GAR coal with 1.7% sulphur scheduled for loading in September at $62-63/mt FOB, but had delayed the loading indefinitely.
"Buyers are scared to nominate vessels for cargoes scheduled to load by end-September," a second Indonesia-based trader said, adding that those suppliers who already have their documents in order are the only ones offering end-September cargoes at the moment. "The smaller-sized miners are facing issues." Offers for September or October loading Panamax cargoes of 5,800 kcal/kg GAR coal were at $64/mt FOB, while bids were at $62/mt FOB, he said. "Some of the small to mid-sized miners might declare force majeure," the first Indonesia-based trader said. MUTED DEMAND "Smaller-sized miners are trying to liquidate their stocks," the second Indonesia-based trader said, adding demand for 5,000 kcal/kg GAR coal has been muted.
Offers for September loading, Panamax cargoes of 5,000 kcal/kg GAR coal were at $51-51.50/mt FOB, he said. Offers from suppliers of single-mine 5,000 kcal/kg GAR coal were $51-53/mt FOB for September loading, Panamax cargoes, he said, adding that blended material was cheaper.
Offers for September loading, Panamax cargoes of single-mine 5,000 kcal/kg GAR coal were at $51-52/mt FOB, while bids were at $50/mt FOB, said a Singapore-based trader. 4,200 GAR STILL HOT "The market is not moving [for most] lower CV grades, but demand is strong for 4,200 kcal/kg GAR coal," said an India-based trader. The 4,200 kcal/kg GAR coal market is oversupplied, the second Indonesia-based trader, said, adding that offers for September loading, Supramax cargoes of this grade from "good suppliers" were at $37/mt FOB, versus bids at $36/mt.
An Indonesia-based producer said he would not sell 4,200 kcal/kg GAR below $37-37.50/mt FOB geared vessel. "That level [$37-37.50] is almost cash cost. If you're a legitimate producer, you would not sell below this price," he said.
Panamax cargoes of 4,200 kcal/kg GAR coal are being offered at about $38/mt FOB but deals could be concluded at not lower than $37.80/mt FOB, a fourth Indonesia-based trader said. Panamax cargoes of 4,200 kcal/kg GAR coal with sulfur below 0.2% were being offered at $38/mt FOB for October and November loading, a second Singapore-based trader said, but counter bids were not immediately available.
Bids for September loading, Supramax cargoes of 3,800 kcal/kg GAR coal were below $30/mt FOB level, the second Indonesia-based trader said. Not many miners are willing to sell below $32/mt FOB levels for 3,800 kcal/kg GAR coal. However, some blended material from East Kalimantan is being offered at $30-30.25/mt FOB, the fourth Indonesia-based trader said.
There are not many enquiries for this grade in India, he said, adding that 3,600-3,400 kcal/kg GAR coal was being bought by Indian buyers at about $25/mt FOB levels. Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $36.50/mt and FOB Kalimantan 3,800 kcal/kg GAR at $30/mt, both stable on day.
Platts also assessed the daily 90-day prices for FOB Kalimantan 5,000 kcal/kg GAR coal at $50.35/mt, down 15 cents on the day and FOB.
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Published by HT Syndication with permission from The Industry 2.0.
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|Publication:||The Industry 2.0|
|Date:||Sep 2, 2014|
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