Indonesian thermal coal prices mostly held steady but are likely to soften in the near term, as demand remained anemic from China and India.

 

On December 21, January-loading cargoes for 3,800 Kcal/kg NAR coal were offered at $59-60/t FOB on Supramax basis and $61-62/t FOB on Panamax, according to traders. Panamax cargoes were less available than Supramaxes, and most of them were quoted in an index-linked manner.

 

Some Panamax cargoes of this grade were heard traded at $59.7-59.8/t FOB, while Supramaxes were settled at $58-59/t, Sxcoal learned from multiple sources.

 

Mid-CV cargoes posted weaker trading liquidity vis-à-vis 3,800 Kcal/kg NAR grade. Some 5,000 Kcal/kg GAR cargoes were offered at a premium of $3/t to the index but no bids were met, an Indonesian miner reported.

 

Chinese utilities continued tender issuance for deliveries in January, with the prices not impressive enough to fuel the spot market.

 

A Guangdong-based utility closed a tender on December 21, with traders submitting their bids at 548-565 yuan/t DDP with VAT for 3,800 Kcal/kg NAR grade, 698-735 yuan/t for 4,500 Kcal/kg NAR, and 829 yuan/t for 5,200 Kcal/kg NAR.

 

Sxcoal last assessed 3,800 Kcal/kg NAR tender-winning prices at 550 yuan/t on December 15, suggesting the current prices were largely unchanged compared with a week earlier.

 

Buying interest from India was tepid as well, curbed by solid domestic supply and rising stocks at utilities. As of December 19, coal stockpiles at power plants across the country reached 32.34 million tonnes, which could sustain power generation for 11.5 days on average, data from the Central Electricity Authority showed.

 

India's steel sector showed some demand for high-CV coal, but Trading activity stayed subdued as buyers exercised caution regarding prices.

 

For Australian coal, a 5,150 Kcal/kg NAR cargo with 0.3% sulfur reportedly traded at $91/t FOB, which can be used for chemicals production, sources noted.

 

The latest Russian seaborne coal deal stood at $113/t CFR South China, and some South African coal was sold at $114/t CFR some port along the Yangtze River, traders noted.

 

On December 21, the CCI index for Indonesian 4,700 Kcal/kg NAR thermal coal was at $90.5/t CFR South China, down $0.5/t day on day, and $82.5/t FOB, down $0.2/t. The CCI index for Indonesian 3,800 Kcal/kg NAR coal was also assessed at $67.8/t CFR, dropping $0.2/t but stable $57.5/t FOB.

 

The CCI index for Australian 5,500 Kcal/kg NAR coal was stable at $112.0/t CFR South China.