Indonesian thermal coal prices hold steady

Indonesian physical thermal coal prices held relatively steady, even as the market continued to turn quieter ahead of next week's lunar new year holiday in main buyer China.

A prompt-loading cross-month late January/early February supramax shipment traded at $34.50/t in the actively traded GAR 4,200 kcal/kg (NAR 3,800 kcal/kg) market, while a cargo of the same coal for loading in February traded at the slightly lower price of $34/t. Bids for February-loading geared supramax shipments of this coal were little changed from yesterday at around $33.75/t, with gearless Panamax cargoes being bid at $34.75/t. Argus does not include gearless cargoes in the index for this type of coal.

Deals involving February- and March-loading supramax cargoes of GAR 4,200 kcal/kg coal by comparison were done last week in a $33-34.75/t range. Argus last assessed GAR 4,200 kcal/kg cargoes on 25 January at $33.75/t, up by $1.37/t from the previous week.

Trade in the ICI 4 derivatives market was also slow after a total of 20,000t of February contracts were done yesterday. Of this, a 5,000t clip traded during the Asia-Pacific business day at $35.10/t, while another 15,000t, comprising of three further 5,000t clips, traded later in a $35-35.10/t range. February contracts were bid today at $34.75/t and offered at $35.25/t, while March was bid at $34.25/t and offered at $35.75/t. April contracts were bid at $33.75/t and offered at $36.25/t.

The latest trades mean that 230,000t of ICI 4 contracts have traded so far this month, taking the total volume to have been cleared by the CME to just under 2mn t since the contract launched last year.

Trade was also relatively thin elsewhere in the Indonesian market. A February-loading supramax cargo of GAR 5,000 kcal/kg (NAR 4,600 kcal/kg) cargo was bid at $51.50/t, with a larger Panamax cargo of the same coal bid at $52/t. Argus does not include geared cargoes in the assessment for this type of coal.

The Australian coal market was quiet today with just one confirmed trade of 25,000t so far this week. That was a NAR 6,000 kcal/kg March cargo that traded on screen for $100/t yesterday.

Australia's Queensland coal port was hit by news of a further strike as some workers at rail operator Aurizon announced three days of industrial action next week. That could potentially affect deliveries to Gladstone, Hay Point and the Dalrymple Bay Coal Terminal. The Queensland region has also been hit by heavy rain recently, although it was unclear if this had any effect on operations.

China's domestic market saw only a few offers of domestic NAR 5,500 kcal/kg coal available at 585-588 fob north China ports. Utility buying has nearly stopped ahead of the lunar new year holiday.

China's futures market saw the May contract on the Zhengzhou commodity exchange close at 571.20 yuan/t today, down by Yn0.40/t from yesterday.