Coal news and updates

Asia Thermal Coal: Holidays in China, India keep market quiet

The Asia-Pacific thermal coal market saw light activity Wednesday amid holidays in China and India.

The Chinese market is shut this week for Golden Week holidays, while India was closed for the day. Also, the People's Bank of China -- China's central bank -- has slated a week-long system upgrade starting September 30, and Chinese banks are not able to do cross-bank transfers during the period.

Two Panamax cargoes of Australian 5,500 kcal/kg NAR coal with maximum ash of 23% were reportedly sold to a Chinese buyer at $62/mt FOB for November loading and at $62.30/mt FOB for December loading, a Singapore-based source said.

"There are plenty of offers from Indonesian miners," a second Singapore-based trader said, adding buying interest remained weak in China and India.

Offers for Panamax cargoes of Indonesian 4,700 kcal/kg NAR coal were at $56/mt FOB, while Chinese buyers could pay a maximum of $55/mt FOB, a third Singapore-based trader said, adding the FOB price might be $54-54.50/mt for Supramax cargoes at this calorific value.

The second Singapore-based trader said that for "good" 4,700 kcal/kg NAR coal, offer prices were still about $56-57/mt FOB for Supramax parcels.

A single-mine Panamax cargo of 4,700 kcal/kg NAR coal with sulfur rejection level of 1% was being offered at $55/mt FOB for loading in October from East Kalimantan, as heard through broker Marex Spectron.

An Indonesia-based trader said buyers were interested in Panamax cargoes of November-loading 4,700 kcal/kg NAR coal at $54.50/mt FOB.

Panamax cargoes of Indonesian 3,800 kcal/kg NAR coal were being offered below $40/mt FOB, the third Singapore-based trader said.

"China has too much coal already but Indonesians can cut production easily compared with Australia miners, as demand remains weak," he said. The second Singapore-based trader said he was still being offered cargoes of 3,800 kcal/kg NAR coal at $40-41/mt FOB for Supramax parcels.

Platts assessed the price of FOB Kalimantan 4,200 kcal/kg GAR coal at $38.80/mt, down 40 cents, while 3,800 kcal/kg GAR coal was unchanged at $33.50/mt FOB.

Platts also assessed the price of FOB Kalimantan 5,000 kcal/kg GAR coal at $54.50/mt FOB, down 50 cents, with FOB Kalimantan 5,900 kcal/kg GAR coal assessed down 10 cents at $67.70/mt. AUSTRALIAN OFFERS Bids for November-arrival Capesize cargoes of Australian 5,500 kcal/kg NAR coal were about $78/mt CFR south China, while offer prices were at the same level, the third Singapore-based trader said.

Platts assessed FOB Newcastle 5,500 kcal/kg NAR coal, with maximum ash of 23% but normalized to 20%, unchanged at $62.60/mt.

FOB Qinhuangdao 5,500 kcal/kg NAR coal was also assessed unchanged at Yuan 430/mt, as was CFR South China 5,500 kcal/kg NAR at $77.25/mt.

Source: Platts