Indonesian coal prices move higher on active Chinese tenders Import & Export,  International,  Thermal Coal 2018-01-08 17:08:00

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)
For any questions, please contact us by or +86-351-7219322.

Editors Recommendations

1 Weekly China coal market news summary (Mar12 - Mar 16) 2018-03-19

China overcapacity campaign faces its toughest challenge this year China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although th

2 Weekly global coal market news summary (Mar12 - Mar 16) 2018-03-19

India to raise coal supply to power plants by railways As power plants face coal shortages, Coal Minister Piyush Goyal has asked Railways to increase coal loading to up to 500 rakes per day

3 China Shenhua Feb commercial coal output down 10.4% YoY 2018-03-19

China Shenhua Energy Co., Ltd, the listed arm of newly-merged China Energy Investment Corporation, produced 22.4 million tonnes of commercial coal in February, dropping 10.4% year on year and 8.9% fro

4 Kazakhstan Jan coal output down 4.9% on yr 2018-03-16

Kazakhstan saw its coal production total 9.73 million tonnes in January, down 4.9% on the year and 7.7% on the month, showed data from the country's Committee of Statistics under the Ministry of Nat

5 The US Jan coal output down 7.7% on yr 2018-03-16

The US produced 63.11 million short tons (57.25 million tonnes) of coal in January, down 7.7% or 5.27 million short tons from a year ago yet up 0.95% from a month ago, showed data from Energy Inform

6 Global top 20 coal enterprises in 2017 2018-03-15

According to coal output in 2017, China Coal Economic Research Association listed out 20 largest companies in the world. Among the top 20 companies, 13 of them come from C

7 China Feb power coal price index up 3.29% on mth, NDRC 2018-03-15

China's monthly-issued price index of power generation coal rose to 567.21 yuan/t in February, up 18.09 yuan/t or 3.29% month on month and 44.72 yuan/t or 8.56% higher than the year before, showed

8 NDRC gives nod to 3 coal mine projects for capacity replacement 2018-03-15

The National Development and Reform Commission, China's top economic planner, has given green light to three coal mine projects in Xinjiang and Inner Mongolia, part of the capacity replacement drive t

9 What does Trump's 25% tariff mean to China's steel exports? 2018-03-14

On March 24, the US will impose 25% tariff on steel imports and 10% on aluminum, following President Donald Trump singed the order on March 9 (GMT +8). The tariff policy has put the globa

10 China's natural gas output and import continues to rise in Jan-Feb 2018-03-14

China's natural gas output totaled 26.19 billion cubic meters in the first two months this year, showed data from the National Bureau of Statistics on March 14. Compared with z

Most Read Articles

1 China overcapacity campaign faces its toughest challenge this year 2018-03-12

China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although the target may look small compared with the previous two years, analysts said.

2 China's coal capital to add 5.55 Mtpa coal capacity in 2018 2018-03-12

Six coal mines with combined production capacity of 5.55 Mtpa will go into operation in Taiyuan, capital city of coal-rich Shanxi province, this year, said the municipal government. This

3 Indian state ports' Feb coal imports down 18.45pct MoM 2018-03-12

India's 12 major government-owned ports imported 12.39 million tonnes of coal in February, down 18.45% from January but up 5.18% year on year, according to latest data released by the India Ports As

4 Indonesia to lose $630 mln in revenue from coal price cap 2018-03-15

Indonesia's decision to impose a price cap on domestic coal prices will lower state revenue by up to 9 trillion rupiah ($630 million) this year, a senior finance ministry official said on March 13.

5 What does Trump's 25% tariff mean to China's steel exports? 2018-03-14

On March 24, the US will impose 25% tariff on steel imports and 10% on aluminum, following President Donald Trump singed the order on March 9 (GMT +8). The tariff policy has put the globa

6 Yancoal to produce 70 Mt of raw coal in 2018 2018-03-14

China's Yancoal Australia Ltd, the largest pure-coal producer in Australia, is expected to produce at least 70 million tonnes of raw coal in 2018, according to Xinhua. The annual raw prod

7 China steel exports may fall further in 2018: top executive 2018-03-12

Chinese exports of steel products may continue to fall this year due to strong domestic demand and reductions in capacity due to environmental commitments, the chairman of state-owned mill Fujian Sang

8 China coal industry de-capacity: from surplus capacity to backward capacity 2018-03-13

China will further phase out 150 million tonnes of coal production capacity in 2018 through market-oriented and law-based means, said Premier Li Keqiang in a government report on March 5.

9 Indonesian steps up for Rio Tinto coal, bids ready 2018-03-14

Indonesian coal giant Adaro Energy is a latecomer to the auction for Rio Tinto's $2.5 billion-plus Queensland coal portfolio. It is understood that Adaro will bid for the whole portfolio

10 S.Korea fuel oil imports soar as coal, nuclear plants shut 2018-03-15

South Korea's move to shut coal-fired generators to control air pollution at the same time as nuclear reactors are going into scheduled maintenance is resulting in surging fuel oil imports, as utiliti