Coal news and updates

Several offers from Indonesian miners for 3,400 Kcal/kg GAR

November 15: A large number of offers are coming from Indonesian miners at low prices for 3,400 Kcal/kg GAR coal, probably because of a shift in buying pattern in Malaysia, the Philippines and other South East Asian countries, an official from a brokerage firm said.

"Almost all producers of this variety of coal are offering the material in the market, but there are hardly any bids. The offers are pouring in, in the range of $28-$30 per ton FOB," the official, who recently visited Indonesia, said.

Indian consumers generally buy 3,800 Kcal/kg GAR or 4,200 Kcal/kg GAR material. However, they are not interested in 3,400 Kcal/kg GAR material, he added.

Asked for the reason behind the increase in offering for 3,400 Kcal/kg GAR material, the official estimated that it could be because Malaysian and Philippines buyers are focused on higher CV material.

However, other sources feel that the recent cyclone in the Philippines might have prompted them to buy less coal from Indonesia, leading to a rise in availability and that is why probably the miners are offering their material.