China import thermal coal prices further dip on shrinking demand

sxcoal.com Import & Export,  International,  Thermal Coal 2018-03-05 17:22:00

Offer prices for Indonesian and Australian coal for exports to China further weakened to track a fast downtrend in China, sources said.


Panamax cargoes of Indonesian 3,800 Kcal/kg NAR were offered at $52/t FOB, while few Chinese buyers could accept at $51-51.5/t, a Guangdong-based trader said, noting actually there were not any firm bids these days.


Some Australian miners made offers for April-delivery cargoes after the holiday, with 5,500 Kcal/kg NAR available at $82-83/t FOB, he said. "This, however, is met with zero buying interest from China where coal price is in the downtrend."


High need in India was offset by very few Chinese inquiries for Indonesian coal, said another Guangdong-based trader.


There was a distance about $2/t between Chinese bids and Indonesian offers which were at $51-52/t FOB for 3,800 Kcal/kg NAR material, he noted. With low power load, many Chinese utilities favored 3,400 Kcal/kg NAR shipments from Indonesia, he added.


Indonesian coal price may further lose strength as slump in Chinese market may extend abroad, said a Beijing-based trader, adding traders with 3,800 Kcal/kg NAR parcels in hand scrambled to sell out at $51/t FOB.


A moderate slide in FOB price was offset by rise of shipping rate for Australian coal, said a Shandong-based trader.


The trader placed offer price for 5,500 Kcal/kg NAR coal at $85-87/t FOB and freight at $9.5-10/t for Capesize ships heading for south China.


"I have received bids for Australian 5,500 Kcal/kg for March or April loading at $80/t FOB," said another Beijing-based trader who offered at $85-86/t.


High price and long shipping time for Australian coal have diverted some Chinese utilities to domestic term contract coal, he remarked.


He meanwhile reported buying interest at $49/t FOB for Supramax shipment for Indonesian 3,800 Kcal/kg NAR coal, yet no deals were heard finalized. Cargoes of 4,800 Kcal/kg NAR was bid at $75/t FOB against offers at $77-78/t.


The Fenwei CCI Import 5500 index was assessed at $92.5/t on March 5, CFR southern China ports, dropping $2/t from a day ago and $5.3/t from the previous week.


On the same day, the 4,700 Kcal/kg NAR import coal was assessed at $80.3/t, CFR southern China ports, down $0.2/t from the day before and from a week earlier; imported 3,800 Kcal/kg NAR coal was assessed at $58/t, dipping $0.2/t day on day and $0.3/t compared with the week prior.


(Writing by Jessie Jia  Editing by Harry Huo)
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