The Indonesian coal market was largely stable, with bids and offers for September-loading geared supramax GAR 4,200 kcal/kg cargoes at similar levels compared with yesterday.
A late August/early September loading geared 45,000t cargo of GAR 4,200 kcal/kg coal was sold to a Chinese buyer at $37.50/t. But it is unclear if this price is repeatable as most bids for September-loading shipments were in a $38-38.50/t range against offers at around $39-39.50/t. An Indonesian producer was offering a 50,000t cargo of this coal at $39/t against a firm bid at $38.75/t and was close to finalising a deal.September-loading geared GAR 4,200 kcal/kg cargoes by comparison were bid yesterday at around $38/t compared with offers at around $38.50-40/t. Larger Panamax cargoes, which are not included in the Argus index that only assesses geared vessels for this type of coal, were being offered yesterday at $38.75-39/t.
Fob prices of Indonesian GAR 4,200 kcal/kg were last assessed by Argus on 17 August at 82¢/t lower than the previous week at $39.34/t, the lowest since June 2017.
ICI4 swaps prices were slightly softer today ahead of a public holiday in Singapore tomorrow. September was bid at $38/t compared with offers at $39/t, while ICI4 swaps for the fourth quarter were bid at $39/t with broker Evolution. September was bid yesterday at $38.25/t against offers at $40.50/t, while a total of 30,000t of ICI4 swaps for the fourth quarter were cleared by the CME yesterday at $39.50/t, with 10,000t each for October, November and December.
Barging operations at Bunati in Indonesia's main Kalimantan coal producing province have been affected in recent days by a sunken barge that had blocked the waterway. But the delays have had no impact on coal prices and the situation has now been resolved, according to market participants.
Enquiries from Chinese and Indian buyers for Indonesian coal cargoes have been increasing of late, although one of the main issues hampering Chinese demand has been import restrictions at several ports, some of which have already reached their full-year 2018 import quotas. A Capesize cargo of Australian coal that had been scheduled to unload at Fangcheng port this week was possibly diverted to Rizhao port with Fangcheng having already reached its import quota.
Chinese thermal coal futures were mixed, with the prompt September contract on the Zhengzhou commodity exchange closing 2.60 yuan/t lower at Yn621/t, although the actively traded January 2019 contract rose by Yn5.20/t to close at $602.40/t.
An October-loading Capesize cargo of Australian NAR 5,500 kcal/kg coal traded at $68/t. It was not immediately clear where the cargo was destined for. But bids from Chinese buyers for this type of coal were significantly lower than this level late last week at a low $60/t, suggesting the cargo is possibly destined for another market.
Indian buyers have been seeking more Australian coal, with the country's utilities needing to restock, while at the same time finding Australian high-ash product more attractive than usual given its wide discount to rival South African coal of the same calorific value.The cargo could also possibly be destined for the European market where it could be blended with low-ash, high-sulphur US material.
The fob price of Newcastle NAR 5,500 kcal/kg coal was last assessed by Argus at $64.84/t on 17 August, up by 56¢/t from the previous week.
