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Friday, 14 August 09
INDONESIA COAL-PRICES FALL TO $74, INDIA EYES SEPT CARGOES


Reuters reported that, Prices of power-station coal from Australia fell to around $74 a tonne as demand eased, while Indian buyers started to look for Indonesia cargoes for delivery in September, traders said. Thermal coal prices on the globalCOAL Newcastle index, a benchmark for Asia, fell $1.57 from the week before to $74.45 a tonne on tepid demand from Asian buyers.

Indonesian bituminous coal of 6,100-6,300 kcal/kg air-dried basis (ADB) was offered at $58 a tonne, FOB mother vessel from South Kalimantan.

Indian buyers have made inquiries for cargoes in September, although demand for Indonesia high-quality coal generally eased, with bigger producers well covered on orders.

"Indian buyers were waiting for some supply orders from the government's tender. Also, there is weather problem too but things will be resolved around October," a regional trader said, referring to the monsoon season which normally runs until September.

Indian state trading entity MMTC, which buys for the majority of state power plants, has put a recent 12.5 million tonne tender on hold and may re-tender after a complaint from a trader.

A 15,000-tonne parcel of Australian coal was traded at $74 a tonne on Tuesday.

* INDONESIAN SUB-BITUMINOUS COAL

Indonesian sub-bituminous coal of 5,100-5,300 kcal/kg ADB was offered at around $36 a tonne, FOB mother vessel from Kalimantan.

Few Chinese buyers were in the market due to ample stocks after they had bought more coal in the first half of this year, an Indonesian dealer said.
But Indian buyers have started looking for cargoes of sub-bituminous coal for delivery in the fourth quarter of this year.

"We receive requests from many Indian traders asking for support letters because they want to participate in the government tenders," said an Indonesian dealer.

"They are looking for shipments in September to end of the year," he said.

Indian demand for Indonesian coal had been slow in the past weeks as buyers prefered cheaper South African cargoes.

In the domestic market, paper and cement firms were in the market for cargoes, although power plants were still struggling to reduce excess stockpiles by asking suppliers to reduce shipment volumes. (Reporting by Fitri Wulandari, Editing by Michael Urquhart)
Source: Reuters



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