Indonesian coal prices move higher on active Chinese tenders

2018-01-08 17:08:00 Import & Export,  International,  Thermal Coal

Indonesian coal prices climbed higher on the back of intensive tenders from Chinese utilities, with Supramax 3,800 Kcal/kg NAR cargoes being offered at $49/t FOB, trade sources said.

One utility was inviting bids for Indonesian 4,700 Kcal/kg NAR coal, which could be obtained at $69/t FOB, said a Beijing-based trader.

One Fujian-based utility issued tenders for February-arrival cargoes; the bid-winning price for Indonesian 3,800 Kcal/kg NAR coal was 430-435 yuan/t CFR south China with VAT included but not port construction fee, said a Guangdong-based trader.

"We offered 4,400 Kcal/kg NAR coal at 540 yuan/t CFR with VAT for arrival in mid-February," the trader said.

Freight rate for Supramax vessels from Indonesian to south China was heard at $7.1/t; that for Capesize cargoes from Australia at $9.4/t, he noted.

Another utility in Fujian awarded tenders at 330 yuan/t and 365 yuan/t CFR, including VAT and port construction fee, for late February-arriving Indonesian 3,100 Kcal/kg and 3,400 Kcal/kg NAR coal, said an eastern China-based trader.

One utility closed tender for January-arrival 4,700 Kcal/kg NAR coal at 600 yuan/t CFR with VAT, the trader noted. He placed offer price of Indonesian 3,800 Kcal/kg NAR at $49/t FOB on Supramax basis.

There remained lots of import cargoes awaiting customs clearance at Guangzhou port, most of which was from Indonesian totaling 1-2 million tonnes, said another Guangdong-based trader.

Ex-stock price for 3,800 Kcal/kg and 4,800 Kcal/kg NAR coal has lost 10 yuan/t for local users to 480 yuan/t and 650 yuan/t with VAT, the trader said, adding it may further slide in the coming days.

Xinsha port area in Guangzhou port held 0.3 million tonne of Australian coal and 0.6 million tonne of Indonesian coal, said a third Guangdong-based trader.

"We had Indonesian 3,800 Kcal/kg NAR coal previously bought at $48/t FOB," he said. "Domestic cargoes were also locked earlier at relatively favorable price."

The trader expressed acceptance to price rise at northern ports, citing recent slump in shipping rate to Guangzhou port.

Import coal price would stay buoyant before the Spring Festival, as Chinese utilities still have plenty of restocking demand, said a Beijing-based trader. "Yet a downturn may occur after the festive holiday as stocks rise at Qinhuangdao port, and import coal arrivals would increase."

The trader offered Australian 5,500 Kcal/kg NAR coal for delivery in late January or early February at $81-82/t FOB.

Despite eased import curb in China, no Australian cargoes were immediately available in the market, said a north China-based trader. "Offer prices were range-bound at $82-83/t FOB."

The Fenwei CCI Import 5500 index was assessed at $89.5/t on January 8, CFR southern China ports, edging up $1/t from a day ago and up $1.5/t from a week ago.

On the same day, the 4,700 Kcal/kg NAR import coal was assessed at $75.8/t, CFR southern China ports, rising $0.6/t from the day before and up $1/t from the week prior; imported 3,800 Kcal/kg NAR coal was assessed at $55.8/t, increasing $0.2/t day on day and up $0.9/t week on week.

(Writing by Jessie Jia   Editing by Harry Huo)
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