Supply pinch backs China import thermal coal price

sxcoal.com Import & Export,  International,  Thermal Coal 2018-02-05 17:20:00

China buyers saw import price for thermal coal hovering high as supply tension continued to prevent them from getting the power generation material at ideal levels.


"There are many inquiries for March-delivery Indonesian coal," said a Guangdong-based trader. "But the market is in shortage of supply," he noted, adding this may cut chance for price drop in February and March.


He placed offer price for 3,800 Kcal/kg and 4,700 Kcal/kg NAR cargoes at $50/t and $74/t FOB. Currently it cost some $6/t to ship Indonesian coal to south China via Panamax vessel, the trader added.


Having done some import deals, one Beijing-based trader reported high offer prices from overseas miners -- $50.5/t and $72.5-73/t FOB for Indonesian 3,800 Kcal/kg and 4,700 Kcal/kg NAR material.


Trades on Indonesian thermal coal were mostly for February delivery, while few deals were made for March, said another Beijing-based trader.


Cargoes of 4,700 Kcal/kg NAR were settled at about $74/t FOB, and the cost of carrying the power-generating fuel on Panamax ships to China was at $6.5/t, he said.


There would be no other factors except weather to further push up import prices, he noted, projecting a market reverse after the two parliamentary sessions in March.


As Indonesian coal prices have climbed quite high, further rising room could be limited, said a Zhejiang-based trader.


Indonesian 3,800 Kcal/kg NAR coal on Supramax basis was offered at $50/t FOB at a freight rate of $7/t, according to the trader.


Australian 5,500 Kcal/kg NAR coal was offered at $89.5-90/t FOB and Capesize freight rate of $9.5/t, he added.


Australian coal price rose steeply, according to a south China-based trader. Early March-arrival 5,500 Kcal/kg NAR bituminous coal shipment with high moisture was offered at $91/t FOB or $100.5/t CFR south China, according to the trader.


High offer price of $100/t CFR has made Chinese buyers hesitate to buy, said a foreign trader, adding maybe it needs some time.


The Fenwei CCI Import 5500 index was assessed at $98.5/t on February 5, CFR southern China ports, rising $0.5/t from a day ago and up $2.5/t from a week ago.


On the same day, the 4,700 Kcal/kg NAR import coal was assessed at $80/t, CFR southern China ports, unchanged from the day before and up $1/t from the week prior; imported 3,800 Kcal/kg NAR coal was assessed at $57.7/t, unchanged day on day and up $0.8/t week on week.


(Writing by Jessie Jia  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Coal Daily Track (Aug 15) 2018-08-15

Thermal coal Domestic market Production area Mixed price trends were seen at major production areas in Shaanxi province. Some miners at Fugu county raised coal prices as smooth sales wit

2 China's Jiangsu to forge two steel industry clusters for efficiency 2018-08-15

Eastern China's Jiangsu province plans to lay out two steel industry clusters along the coast in next few years through methods of shutdown and relocation, the provincial government said in a document

3 China's Jul coal import surges 49%, backed by sizzling weather or de-capacity reform? 2018-08-15

China's national statistics body released energy supply data for July on August 14, showing China's coal imports skyrocketed 49.1% on the year to 29.01 million tonnes in the month, reaching the highes

4 China's import coal market still sees sparse deals on lukewarm demand 2018-08-15

Sparse deals were reached in China's import thermal coal market, as domestic coal-fired power plants still showed lukewarm demand for the fuel and unfavorable factors like import quota restriction and

5 China spot thermal coal price further advances, beating traders' expectations 2018-08-15

China's domestic thermal coal price further climbs up after a short pause, beating the conservative expectations most traders held at the beginning of this round of rise in early August.

6 Tight trucking capacity sending coal freight higher in Shanxi 2018-08-15

Truck freight for delivering coking coal within and out of Shanxi province in northern China edged up 10-50 yuan/t, as trucking capacity was constrained partly by environmental crackdown and partly by

7 China's QHD port posts ten consecutive days of coal stock decline 2018-08-15

Qinhuangdao port in North China's Bohai bay posted decline of thermal coal stocks for ten consecutive days, due mainly to faster growth of coal outflows than that of inflows. As of August

8 China accelerates natural gas production in Jul; import stays high 2018-08-15

China accelerated churning out natural gas in July and maintained high imports of the material, according to official data, a move to meet the burgeoning demand from domestic market amid a shift from

9 SW China coal-fired power plants step on edge of bankruptcy 2018-08-15

"We have two 600-MW coal-fired generators – one for the backup and the other running unsteadily. Only the summer and winter peak periods may the two have an opportunity to run at the same time. The co

10 China Coal Daily Track (Aug 14) 2018-08-14

Thermal coal Domestic market A 10 yuan/t increase was seen at some mines in northern Shanxi and Ordos, Inner Mongolia, driven by more inquiries from traders and lower stocks at min

Most Read Articles

1 China spot thermal coal market firms on utilities' active buying 2018-08-07

Spot thermal coal market showed signs of stabilizing at Bohai-rim ports in northern China, alongside utilities' active buying for the power generating fuel and strong sentiment among traders in uphold

2 China Jul coal imports hit multi-year high, surging 49.05% on yr 2018-08-08

China's coal imports reached 29 million tonnes in July, remaining a large growth by 49.05% from a year ago, data from the General Administration of Customs showed on August 8, reaching the highest sin

3 Uncertainty rises towards Chinese coal market after price rally for days 2018-08-10

Chinese domestic thermal coal price headed up again after a brief fall in early August, leaving a wide uncertainty on market trend in the near future. The latest CCI index for 5,500 Kcal/

4 QHD coal stocks slide for 6 days; prices lack continued momentum 2018-08-09

Coal stocks at China's benchmark Qinhuangdao port have been on the drop for six consecutive days, down to 6.42 million tonnes on August 9, showed data from sxcoal.com. That was a 9.8% ret

5 Indonesia's Aug HBA thermal coal price up 3.04% MoM to $107.83/t 2018-08-06

Indonesia's Ministry of Energy and Mineral Resources set its August thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $107.83/t, hitting the highest since March 2012, up 28.4

6 Import coal price continues edging down, little supported by domestic upturn 2018-08-08

China's import thermal coal price is still edging down and gets little support from the recent pickup in the domestic market. Offer-bid spread for Indonesian thermal coal remained at $2/t

7 Chinese traders see losses easing on further upward strength of thermal coal 2018-08-10

Chinese thermal coal traders saw their losses, caused by previous sharp slumps of prices,easing gradually amid the recent upward strength at northern transfer ports. The mainstream

8 China will tighten grips on coke production in major production regions 2018-08-09

China plans to crank up capacity cutbacks in major coke production regions, said the environmental ministry in a draft plan recently, in response to the country's pledge to win the "Blue Sky Protectio

9 Customs clearance delay beefs up China Jul coal imports 2018-08-09

China's coal imports totaled 29 million tonnes in July, soaring 49.05% from a year ago, the customs data showed on August 8, reaching the highest since January 2014. Traders said the main reason behin

10 Caofeidian will play bigger role in coal transfer after Qinhuangdao quits coal business 2018-08-08

Caofeidian port will take over a heavy responsibility from Qinhuangdao port – the current largest coal port in China, which is said to quit coal transfer business gradually in three to five years.